XN000022-1991-03-06 — Page 19

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WEDNESDAY, MARCH 6, 1991

"OUR PERFORMANCE IN MAJOR MARKETS THIS YEAR WILL PROBABLY CONTINUE TO BE MIXED. WHILE DOMESTIC EXPORTS TO THE UNITED STATES ARE EXPECTED TO FALL FURTHER, THIS IS LIKELY TO BE OFFSET BY MARKED INCREASES TO GERMANY, CHINA AND SEVERAL OTHER ECONOMIES IN EAST ASIA.

"DOMESTIC EXPORTS TO THE UNITED KINGDOM AND JAPAN WILL PROBABLY SHOW A MODERATE INCREASE, IN CONTRAST TO THE DECLINE EXPERIENCED LAST YEAR.

"TAKEN TOGETHER, THE GROWTH RATE OF OUR DOMESTIC EXPORTS FOR 1991 IS FORECAST TO BE 2.5 PER CENT," HE SAID.

SIR PIERS SAID EXPORTS OF SERVICES WERE FORECAST TO GROW BY SIX PER CENT.

HE ADDED THAT ALTHOUGH RECEIPTS FROM TOURISM MIGHT NOT GROW AS RAPIDLY AS THIS, GIVEN THE GULF SITUATION, EXPORTS OF TRADE-RELATED AND OTHER BUSINESS SERVICES SHOULD CONTINUE TO SHOW A HEALTHY INCREASE.

ON THE IMPORT SIDE, SIR PIERS SAID IMPORTS OF GOODS WERE FORECAST TO RISE BY 10.7 PER CENT, MAINLY REFLECTING THE EXPECTED RAPID INCREASE IN RE-EXPORTS, WHILE IMPORTS OF SERVICES WERE FORECAST TO GROW BY SEVEN PER CENT.

IN THE DOMESTIC SECTOR, HE SAID PRIVATE CONSUMPTION EXPENDITURE WAS FORECAST TO INCREASE BY 3.5 PER CENT.

ΤΟ

"CONTINUED IMPROVEMENT IN REAL INCOMES SHOULD GIVE SUPPORT CONSUMPTION DEMAND, ALTHOUGH THE UNCERTAIN ECONOMIC OUTLOOK MAY WELL AFFECT SPENDING ΤΟ SOME EXTENT. THE FORECAST GROWTH RATE OF GOVERNMENT CONSUMPTION EXPENDITURE IS SIX PER CENT," HE SAID.

ON THE OVERALL CAPITAL INVESTMENT FOR THE ECONOMY, SIR PIERS SAID IT WAS FORECAST TO INCREASE BY 4.6 PER CENT.

"THIS IS NOT UNSATISFACTORY.

PERFORMANCE,

IN LINE WITH THE IMPROVEMENT IN OVERALL ECONOMIC INVESTMENT IN PLANT AND MACHINERY IS EXPECTED TO GROW BY FOUR PER CENT THIS YEAR.

"WITH A MAJOR CAPITAL WORKS PROGRAMME NOW UNDER

WAY. PUBLIC SECTOR ACTIVITY ON BUILDING AND CONSTRUCTION IS EXPECTED TO CONTINUE TO GROW QUITE RAPIDLY AT EIGHT PER CENT," THE FINANCIAL SECRETARY NOTED.

OUTPUT

HE SAID PRIVATE SECTOR EXPENDITURE ON BUILDING AND CONSTRUCTION WAS FORECAST TO INCREASE BY FOUR PER CENT. TOTAL CONSTRUCTION WAS THUS EXPECTED TO GROW BY 5.5 PER CENT.

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