XN000022-1993-05-10 — Page 5

MONDAY, MAY 10, 1993

THE IMPLICIT PRICE DEFLATOR OF GDP, AS A BROAD MEASURE OF OVERALL INFLATION IN THE ECONOMY, ROSE BY 10.3% IN THE FOURTH QUARTER OF 1992 OVER THE SAME QUARTER IN 1991, FOLLOWING AN INCREASE OF 9.4% IN THE THIRD QUARTER.

GDP

THE MORE RAPID RATE OF CHANGE OF THE IMPLICET PRICE DEFLATOR OF IN THE FOURTH QUARTER OF 1992 WAS RELATED TO THE DIFFERENT PRICE MOVEMENTS OF THE EXTERNAL SECTOR.

IN THAT QUARTER, THE RATE OF CHANGE OF IMPORT PRICE IS MUCH SLOWER THAN THAT OF THE TOTAL EXPORT PRICE. THE GDP DEFLATOR WAS HENCE TEMPORARILY LIFTED BY THE IMPROVED TERMS OF TRADE.

THE YEAR-ON-YEAR GROWTH RATE OF OVERALL GDP FOR THE FOURTH QUARTER OF 1992 WAS LOWER THAN THE GROWTH RATES RECORDED FOR THE VARIOUS FINAL DEMAND COMPONENTS, 1NCLUDING PRIVATE CONSUMPTION EXPENDITURE, GOVERNMENT CONSUMPTION EXPENDITURE, GROSS DOMESTIC FIXED CAPITAL FORMATION AND TOTAL EXPORTS OF GOODS AND SERVICES.

THIS IS NOT UNEXPECTED AS THE INCREASES FOR THE VARIOUS FINAL DEMAND COMPONENTS WERE SUPPORTED BY A LARGE INCREASE IN IMPORTS APART FROM THE INCREASE IN LOCAL SUPPLY.

SUM

GDP REFLECTS HOW MUCH THE LOCAL ECONOMY HAS PRODUCED AND IS THE OF ALL FINAL DEMAND COMPONENTS NET OF THEIR CORRESPONDING IMPORT CONTENTS.

THE REVISED (MAY 93) ESTIMATES SHOW THAT THE YEAR-ON-YEAR GROWTH RATES OF GDP IN REAL TERMS FOR THE FIRST TWO QUARTERS OF 1992 REMAINED UNCHANGED AT 5.2% AND 4.6% RESPECTIVELY, WHILST THAT FOR THE THIRD QUARTER OF 1992 WAS ADJUSTED SLIGHTLY DOWNWARD, FROM 5.2% ΤΟ 5.1%.

BASED ON THE LATEST GOP ESTIMATES, GDP GREW BY 5% IN REAL TERMS IN 1992 OVER 1991.

THE LATEST ESTIMATES OF QUARTERLY GDP FROM THE FIRST QUARTER OF 1991 TO THE FOURTH QUARTER OF 1992 ARE PUBLISHED IN A REPORT ENTITLED "QUARTERLY ESTIMATES OF GROSS DOMESTIC PRODUCT, 4TH QUARTER 1992",

THE REPORT IS NOW ON SALE AT $2 A COPY AT THE GOVERNMENT' PUBLICATIONS CENTRE, HONG KONG; AND AT THE PUBLICATIONS SALES COUNTER OF THE CENSUS AND STATISTICS DEPARTMENT, 19TH FLOOR, WAN CHAI TOWER, 12 HARBOUR ROAD, WAN CHAI.

ENQUIRIES MAY BE DIRECTED TO THE NATIONAL INCOME BRANCH OF CENSUS AND STATISTICS DEPARTMENT ON TELEPHONE 582 5077.

THE

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