XN000022-1991-08-23 — Page 3

FRIDAY, AUGUST 23, 1991

ON THE OTHER HAND, DOMESTIC EXPORTS ΤΟ THE UNITED STATES CONTINUED TO DECLINE. AS A RESULT, THE SHARE OF DOMESTIC EXPORTS ΤΟ THE UNITED STATES IN HONG KONG'S TOTAL DOMESTIC EXPORTS FELL TO ONLY 25% IN THE FIRST HALF OF 1991, FROM 29% FOR 1990 AS A WHOLE.

"RE-EXPORTS

ROSE MARKEDLY, BY ABOUT 25% IN REAL TERMS, IN THE FIRST HALF OF 1991 OVER THE SAME PERIOD IN 1990. AS RE-EXPORTS CONTINUED TO GROW AT A FASTER RATE THAN DOMESTIC EXPORTS, THEIR SHARE IN TOTAL EXPORTS INCREASED FURTHER, TO 69%.IN THE FIRST HALF OF 1991 FROM 65% FOR 1990 AS A WHOLE.

"SUSTAINED STRONG GROWTH IN RE-EXPORTS INVOLVING CHINA IN BOTH DIRECTIONS WAS THE MAIN FACTOR UNDERLYING THIS REMARKABLE PERFORMANCE. CHINA REMAINED THE LARGEST MARKET FOR AS WELL AS THE LARGEST SOURCE OF HONG KONG'S RE-EXPORTS, ACCOUNTING FOR 29% AND 57% RESPECTIVELY OF THE TOTAL IN THE FIRST HALF OF 1991, MR TANG SAID.

**

IMPORTS REGISTERED A STRONG GROWTH OF ABOUT 20% IN REAL TERMS IN THE FIRST HALF OF 1991 OVER A YEAR EARLIER. RETAINED IMPORTS ALSO GREW SIGNIFICANTLY, BY ABOUT 13% OVER THE SAME PERIOD.

RAW

AMONG THE VARIOUS END-USE CATEGORIES, RETAINED IMPORTS OF MATERIALS AND SEMI-MANUFACTURES RECORDED THE FASTEST GROWTH, BY ABOUT 22% IN REAL TERMS.

A VISIBLE TRADE DEFICIT OF $21,183 MILLION, EQUIVALENT TO 6% OF THE VALUE OF IMPORTS, WAS RECORDED IN THE FIRST HALF OF 1991. A: LARGER AMOUNT OF RETAINED IMPORTS, PARTICULARLY RAW MATERIALS AND SEMI-MANUFACTURES FOR PRODUCTION, CONTRIBUTED CONSIDERABLY ΤΟ THE INCREASED TRADE DEFICIT.

ACCORDING TO THE PRELIMINARY QUARTERLY GDP ESTIMATE, PRIVATE CONSUMPTION EXPENDITURE, AS THE LARGEST COMPONENT OF DOMESTIC DEMAND, GREW BY 5% IN REAL TERMS IN THE FIRST QUARTER OF 1991 OVER A YEAR EARLIER, FOLLOWING AN INCREASE OF 7% IN THE FOURTH QUARTER OF 1990. .

THERE WAS A GREATER DEMAND FOR DURABLE GOODS, IN LINE WITH THE INCREASED TAKE-UP OF RESIDENTIAL PROPERTY. EXPENDITURE OF HONG KONG RESIDENTS TRAVELLING ABROAD ALSO ROSE SIGNIFICANTLY.

RATE QUARTER

AS REGARDS GOVERNMENT CONSUMPTION EXPENDITURE, THE GROWTH IN

NATIONAL ACCOUNTS TERMS WAS 6% IN REAL TERMS IN THE FIRST OVER A YEAR EARLIER, FOLLOWING AN INCREASE OF 5%. IN THE FOURTH QUARTER OF 1990.

LOCAL INVESTMENT, MEASURED IN TERMS OF GROSS DOMESTIC FIXED CAPITAL FORMATION, ROSE BY 7% IN REAL TERMS IN THE FIRST QUARTER OVER A YEAR EARLIER, FOLLOWING A MARKED INCREASE OF 19% IN THE QUARTER OF LAST YEAR.

FOURTH

OF THE MAIN COMPONENTS, EXPENDITURE ON BUILDING AND CONSTRUCTION GREW BY 1% IN REAL TERMS IN THE FIRST QUARTER, FOLLOWING AN INCREASE OF 13% IN THE FOURTH QUARTER OF 1990. THE SLOWER GROWTH REFLECTED MAINLY THE WINDING DOWN OF SOME LARGE PROJECTS.

EXPENDITURE ON PLANT, MACHINERY AND EQUIPMENT ROSE BY REAL TERMS IN THE FIRST QUARTER. THE GROWTH RATE IN THE QUARTER OF 1990 WAS 18%.

7%

IN FOURTH

/THE SIGNIFICANT