XN000022-1993-03-03 — Page 30

WEDNESDAY, MARCH 3, 1993

THE

ECONOMIC PROSPECTS FOR 1993 VERY ENCOURAGING: FS

FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, (WEDNESDAY) THAT HONG KONG'S ECONOMIC PROSPECTS FOR EXTREMELY GOOD.

PRESENTING HIS SECOND BUDGET TO THE LEGISLATIVE MACLEOD SAID HE WAS CONFIDENT THAT THE TERRITORY SHOULD FLOURISH AS IT APPROACHED THE "ASIAN CENTURY".

SAID TODAY 1993 WERE

COUNCIL, MR CONTINUR ΤΟ

"BUT WE CAN NEVER TAKE SUCCESS FOR GRANTED. IT IS FAR FROM INEVITABLE," HE SAID.

HONG KONG'S CONTINUED PROSPERITY DEPENDS ON MAINTAINING THE RIGHT ENVIRONMENT FOR BUSINESS GROWTH.

"ON

THIS SCORE, OUR PROSPECTS FOR 1993 ARE VERY ENCOURAGING, ALTHOUGH WE CANNOT IGNORE SOME POTENTIAL CLOUDS, PARTICULARLY ON THE TRADE HORIZON, HE SAID.

MR MACLEOD SAID HE WAS ENCOURAGED, FOR EXAMPLE, BY THE VIGOUR OF INVESTMENT IN MACHINERY AND EQUIPMENT, WHICH WAS LAYING A FIRM BASIS FOR FURTHER INCREASES IN PRODUCTIVITY.

HE EXPECTED ECONOMIC GROWTH IN 1993 TO BE SOMEWHAT GREATER THAN LAST YEAR:

ALTHOUGH WESTERN EUROPE AND JAPAN ARE LIKELY TO REMAIN SLUGGISH, CHINA AND THE PACIFIC REGION ARE SET TO CONTINUE THEIR RECORD GROWTH. AND PROSPECTS FOR THE UNITED STATES, STILL HONG KONG'S MAJOR MARKET, SEEM BRIGHTER THAN LAST YEAR.

PROVIDED THAT MFN STATUS FOR CHINA IS RENEWED, TOTAL EXPORTS WILL GROW BY 18.5% IN REAL TERMS, WITH RE-EXPORTS GROWING BY 25%. IMPORTS WILL ALSO GROW BY 19%.

SPENDING

* GROWTH IN FOREIGN TRADE WILL TRANSLATE INTO HIGHER PERSONAL

INCOMES AND INCREASED CONSUMER DEMAND. CONSUMER WILL GROW BY 7.5% IN REAL TERMS.

GROWTH IN FOREIGN TRADE, BACKED BY RISING CONSUMER WILL ALSO CREATE A FAVOURABLE INVESTMENT CLIMATE. PRIVATE SECTOR SPENDING ON MACHINERY AND EQUIPMENT WILL GROW BY IN REAL TERMS.

DEMAND,

15%

MR MACLEOD SAID THIS "BENIGN CYCLE" OF FOREIGN TRADE, INVESTMENT AND GDP GROWTH, WHICH WAS TRANSFORMING LIVING STANDARDS THROUGHOUT MUCH OF ASIA, MEANT THAT HONG KONG WOULD CONTINUE TO CLIMB HIGHER UP THE WORLD ECONOMIC RANKINGS.

"GDP WILL GROW BY 5.5% IN REAL TERMS, AND GDP PER HEAD WILL AMOUNT TO $146,700 (U.S.$18,800).

"WE HAVE EVERY CHANCE OF OVERTAKING THE GDP PER HEAD OF THE UK AND AUSTRALIA AND OF APPROACHING ITALY AND THE NETHERLANDS," HE SAID.

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