XN000022-1994-01-06 — Page 3

THURSDAY, JANUARY 6, 1994

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STEADY ECONOMIC GROWTH EXPECTED FOR 1994

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THE FINANCIAL SECRETARY, SIR HAMISH MACLEOD, KONG'S ECONOMY TO MAINTAIN STEADY GROWTH IN 1994.

EXPECTED HONG

SPEAKING AT A MEDIA SESSION TO REVIEW 1993 AND TO LOOK AHEAD TO THE NEW YEAR, HE SAID ECONOMIC GROWTH IN 1994 WAS LIKELY TO BE AROUND FIVE PER CENT IN REAL TERMS.

ON THE DOMESTIC FRONT, DEMAND WOULD BE UNDERPINNED BY SUSTAINED FULL EMPLOYMENT AND STEADY INCREASE IN INCOMES AND THE PROGRESSIVE IMPLEMENTATION OF MAJOR INFRASTRUCTURAL PROJECTS, HE SAID.

ON EXTERNAL TRADE, HE BELIEVED THERE WOULD BE CONTINUED ROBUST GROWTH IN RE-EXPORTS AND IN TRADE IN SERVICES DUE TO IMPROVED ECONOMIC OUTLOOK IN HONG KONG'S MAJOR OVERSEAS MARKETS.

THE SUCCESSFUL CONCLUSION OF THE URUGUAY ROUND SHOULD ALSO SENTIMENTS, HENCE RAISING EXPECTATIONS FOR A FASTER GROWTH IN INTERNATIONAL TRADE, HE SAID.

BOOST

HE ALSO POINTED OUT THAT HONG KONG COULD EXPECT ΤΟ BENEFIT FROM THE RECENT UNIFICATION OF THE RENMINBI EXCHANGE RATE.

THIS WAS A MAJOR STEP TOWARDS FULL CONVERTIBILITY OF THE RENMINBI AND WOULD FACILITATE CHINA'S EFFORTS TO RE-ENTER GATT AND WOULD ALSO HELP TO ATTRACT MORE FOREIGN INVESTMENT INTO SAID.

CHINA,

HE

ON INFLATION, HE SAID THE GOVERNMENT'S PRELIMINARY THAT

1994 INFLATION WAS LIKELY TO STAY AT MORE OR LESS THE SAME LEVEL AS IN 1993.

VIEW

WAS

ON HONG KONG'S ECONOMIC PERFORMANCE IN 1993, HE NOTED THAT THE FORECAST GDP GROWTH RATE OF 5.5 PER CENT FOR THE YEAR WAS LIKELY TO BE LARGELY ACHIEVABLE.

THE FORECAST CONSUMER PRICE INFLATION RATE FOR THE YEAR AS A WHOLE, AT AN AVERAGE OF 8.5 PER CENT, WAS ALSO LIKELY TO BE ON TARGET GIVEN THE ACTUAL OUTTURN SO FAR, HE SAID.

ON THE MEDIUM-TERM OUTLOOK FOR 1994-97, SIR HAMISH SAID THE DYNAMIC ECONOMIC GROWTH IN THE ASIA PACIFIC REGION, COUPLED WITH GRADUAL ECONOMIC RECOVERY IN THE UNITED STATES AND WESTERN EUROPE, POINTED TO GOOD BUSINESS PROSPECTS AHEAD.

HE ADDED THAT THE LONGER TERM PROSPECTS FOR CHINA'S ECONOMY SHOULD BE BRIGHT.

HE WAS PLEASED TO NOTE THE CONTINUATION OF CHINA'S ECONOMY AND CURRENCY REFORMS WHICH WOULD BE OF BENEFIT TO HONG KONG ON SEVERAL COUNTS.

HE SAID THESE REFORMS WOULD MAKE CHINA'S ECONOMIC AND FINANCIAL SYSTEMS MORE MARKET-DRIVEN AND THIS SHOULD BE WELCOMED BY FOREIGN INVESTORS AND HELP ACHIEVE LONG-TERM, SUSTAINABLE GROWTH.

/THE REFORMS,