XN000022-1991-05-24 — Page 6

FRIDAY, MAY 24, 1991

OVER 13%,

IMPORTS ROSE BY ABOUT 18% IN REAL TERMS IN THE FIRST QUARTER A YEAR EARLIER. THE GROWTH RATE OF RETAINED IMPORTS, AT ABOUT WAS ALSO MARKED.

IT IS NOTABLE THAT, AMONG THE VARIOUS END-USE CATEGORIES, RETAINED IMPORTS OF RAW MATERIALS AND SEMI-MANUFACTURES CONTINUED SURGE, WITH A YEAR-ON-YEAR GROWTH RATE OF ABOUT 23% IN REAL TERMS.

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OF

A VISIBLE TRADE DEFICIT OF $9,815 MILLION, EQUIVALENT TO 6% THE VALUE OF IMPORTS, WAS RECORDED IN THE FIRST QUARTER OF 1991.

THIS COMPARED WITH A DEFICIT OF $3,072 MILLION, EQUIVALENT 2% OF THE VALUE OF IMPORTS, RECORDED IN THE FIRST QUARTER OF LAST YEAR, MR TANG SAID.

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"A LARGER AMOUNT OF RETAINED IMPORTS, PARTICULARLY RAW MATERIALS AND SEMI-MANUFACTURES FOR PRODUCTION, CONSIDERABLY TO THE INCREASED TRADE DEFICIT, HE EXPLAINED.

IN

CONTRIBUTED

ON DOMESTIC DEMAND, INVESTMENT INTENTIONS CONTINUED TO REVIVE THE FIRST QUARTER OF 1991, AS RETAINED IMPORTS OF CAPITAL GOODS, PARTICULARLY MACHINERY FOR INDUSTRIAL USE, PICKED UP CONSIDERABLY.

"RETAINED IMPORTS OF CAPITAL GOODS ROSE BY ABOUT 8% IN REAL TERMS IN THE FIRST QUARTER OVER A YEAR EARLIER," MR TANG SAID.

CONSUMPTION DEMAND WAS, HOWEVER, STILL MODERATE IN THE FIRST QUARTER OF 1991.

"RETAINED IMPORTS OF CONSUMER GOODS DECLINED BY ABOUT 6% IN REAL TERMS IN THE FIRST QUARTER OVER A YEAR EARLIER, AS THE GULF WAR HAD EXERTED AN ADVERSE IMPACT ON TOURIST SPENDING IN HONG KONG AND PROBABLY ALSO ON LOCAL CONSUMER SENTIMENT.

"NEVERTHELESS, THE DECLINE HAD BECOME SMALLER TOWARDS THE END OF THE QUARTER. ALSO, THE VOLUME OF RETAIL SALES SHOWED A MODEST INCREASE IN JANUARY AND FEBRUARY COMBINED, MR TANG SAID.

CONSUMER PRICE INFLATION TENDED TO ACCELERATE IN THE FIRST QUARTER OF 1991. THE CONSUMER PRICE INDEX (A) REGISTERED A YEAR-ON- YEAR RATE OF INCREASE OF 11.9% IN THE FIRST QUARTER OF 1991.

10.9%.

THE CORRESPONDING INCREASE IN THE PRECEDING QUARTER WAS ON A YEAR-ON-YEAR COMPARISON, THE CPI(A) ROSE BY 10.8% IN JANUARY, 11.9% IN FEBRUARY AND 12.9% IN MARCH.

"I

THE FASTER INCREASE IN FEBRUARY THAN IN JANUARY WAS MAINLY DUB TO SIGNIFICANT INCREASES IN THE PRICES OF MANY ESSENTIAL FOODSTUFFS AND IN THE CHARGES FOR MEALS AT RESTAURANTS AROUND THE LUNAR NEW YEAR.

"THE FURTHER ACCELERATION IN MARCH WAS LARGELY THE RESULT OF THE INCREASE IN TOBACCO DUTY AND, TO A LESSER EXTENT, THE HIGHER DUTIES ON ALCOHOLIC DRINKS AND PETROL, MR TANG SAID.

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ALTHOUGH THE LABOUR MARKET WAS STILL TIGHT IN OVERALL TERMS, A DEGREE OF EASING HAD EMERGED IN RECENT MONTHS.

/THE SEASONALLY