XN000022-1992-03-04 — Page 5

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WEDNESDAY, MARCH 4,

1992

ACCOUNT.

"IN FRAMING MY BUDGET PROPOSALS, I HAVE TAKEN THESE ISSUES INTO

ENSURE

FINANCIAL

AND ON

SUFFICIENT "I HAVE ALSO BEEN CONCERNED TO RESERVES TO MEET BOTH KNOWN CONTINGENCIES AND THE FUTURE STRAINS CHALLENGES WHICH ARE AN INEVITABLE PART OF OUR HEAVY DEPENDENCE

POLITICAL TRANSITION EXTERNAL TRADE AND OF THE COMPLEX ECONOMIC AND WHICH HONG KONG HAS EMBARKED UPON,

HE SAID.

HEALTHY PROSPECTS FOR ECONOMIC GROWTH AHEAD: FS

THE FINANCIAL

SECRETARY, THE HON HAMISH

PROSPECTS FOR ECONOMIC GROWTH IN 1992 LOOKED HEALTHY.

MACLEOD, SAID THE

LEGISLATIVE COUNCIL THAT

PRESENTING HIS BUDGET FOR 1992-93 TO THE TODAY (WEDNESDAY), MR MACLEOD SAID THE GOVERNMENT'S ESTIMATE WAS GDP WOULD GROW THIS YEAR BY 5% IN REAL TERMS.

THIS YEAR'S ECONOMIC EXPANSION, HE SAID, WOULD GIVE

A GDP PER HEAD OF HK$125,000 OR US$16,000.

HONG KONG

HIGHEST IN

"AT THIS LEVEL, HONG KONG'S GDP WILL BE AMONG THE ASIA, AND WELL AHEAD OF A NUMBER OF DEVELOPED ECONOMIES, HE SAID.

FOR 1992 THE PROMISING OUTLOOK THE FINANCIAL SECRETARY SAID

THE LATTER CONTINUED THE ENCOURAGING TREND WHICH BEGAN TO EMERGE IN PART OF 1990 WHEN HONG KONG'S GROWTH RATE STARTED TO Accelerate ECONOMIC REVIVAL WAS EVIDENT.

1990.

IN 1991, GDP GROWTH WAS ABOUT 4%, COMPARED WITH

MR MACLEOD SAID THE PICK-UP IN THE TEMPO ACTIVITY REFLECTED A NUMBER OF FACTORS.

AND

ONLY 3% IN

OF THE ECONOMIC

THE MOST SIGNIFICANT WAS THE POSITIVE IMPACT OF THE OF UNDERSTANDING WITH CHINA ON THE AIRPORT CORE PROGRAMME. TO A SURGE IN OPTIMISM THROUGHOUT THE BUSINESS COMMUNITY.

HE SAID THE NEW, MORE CONFIDENT ATMOSPHERE STRONGLY IN THE INVESTMENT FIGURES. IN REAL TERMS IN 1991.

MEMORANDUM

THIS

LED

SHOWED UP MOST 10% INVESTMENT SPENDING GREW BY

HE SAID PARTICULARLY NOTABLE LAST YEAR WAS THE INVESTMENT IN PLANT AND MACHINERY.

18% RISE IN

"THIS

SHARP GROWTH MADE A MAJOR CONTRIBUTION TO UPGRADING

HE SAID. PRODUCTIVE CAPACITY AND QUALITY,

OUR

It

MR MACLEOD SAID THE HEALTHY GROWTH PREDICTED FOR PROMISING TRADE PROSPECTS. REFLECTED, FIRST AND FOREMOST,

/HONG KONG

THIS

YEAR