XN000022-1993-08-27 — Page 10

FRIDAY, AUGUST 27, 1993

RE-

THE

FOR

ON

EXPORTS

AND THE FORECAST GROWTH RATES FOR DOMESTIC EXPORTS WHILE

ADJUSTED ARE

BY DOWNWARDS, THESE ARE LARGELY OFFSET DOWNWARD ADJUSTMENT IN THE FORECAST GROWTH RATE IMPORTS AND BY THE UPWARD ADJUSTMENT IN RESPECT OF THE NET BALANCE EXPORTS AND IMPORTS OF SERVICES.

CORRESPONDING

THIS

ON CONSUMER PRICE INFLATION, THE MODERATING TREND SO FAR YEAR HAS BEEN FACILITATED BY AN EASING IN THE DOMESTIC INFLATIONARY PRESSURES,

CAN BE SEEN FROM THOSE COMPONENTS OF THE CPI AS LARGE LOCAL INPUT CONTENT, AS WELL AS BY STABLE OR IN SOME EVEN REDUCED IMPORT PRICES.

WITH A INSTANCES

THE RECENT MOVEMENTS IN THE IMPORT PRICES OF CONSUMER ITEMS HAVE REMAINED LARGELY FAVOURABLE NOTWITHSTANDING THE STRONGER JAPANESE YEN AND THE INFLATION IN CHINA.

THE OUTTURN IN THE CPI(A) SUGGESTS THAT THE EARLIER FORECAST OF AN AVERAGE INCREASE OF 9.5% FOR 1993 IS ON THE HIGH SIDE.

YEAR INCREASE

THIS AVERAGE INCREASE FOR THE FIRST SEVEN MONTHS OF THE WAS SLOWER BY 1 PERCENTAGE POINT, AT 8.5%, WHILE THE LATEST RECORDED FOR THE MONTH OF JULY WAS EVEN SLOWER, AT 8.2%.

HAVING

THE RATE OF OF A

REGARD TO THE POSSIBILITY OF A GREATER IMPACT FROM YEN AND FROM CHINA'S INFLATION, THE FORECAST OF THE AVERAGE INCREASE IN 'THE

THE YEAR IS CUT BY CPI (A)

ONLY HALF PERCENTAGE POINT, TO 9%.

THERE

FOR

WOULD BE SCOPE FOR A FURTHER CUT IF THE IMPACT OF TWO FACTORS REMAINS MODEST,

THESE

MEANWHILE, THE FORECAST RATE OF INCREASE IN THE GDP DEFLATOR STAYS UNCHANGED, AT 9.5%.

THE

HALF-YEARLY

SALE ECONOMIC REPORT 1993 IS NOW ON

AT THE GOVERNMENT PUBLICATIONS CENTRE, GROUND FLOOR, GENERAL POST OFFICE BUILDING, CONNAUGHT PLACE, CENTRAL, AT $40 A COPY.

/FORCEAST

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