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FRIDAY, NOVEMBER 25, 1994
THIRD QUARTER ECONOMIC REPORT 1994
THE
THE THIRD QUARTER ECONOMIC REPORT 1994 WAS RELEASED BY
TODAY (FRIDAY). FOLLOWING IS A SUMMARY OF THE MAIN POINTS:
GOVERNMENT
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THE HONG KONG ECONOMY MAINTAINED ITS GROWTH MOMENTUM IN THE THIRD QUARTER OF 1994. GDP GREW BY 5.4% IN REAL TERMS IN THE SECOND QUARTER OVER A YEAR EARLIER, FOLLOWING A 5.7% INCREASE IN THE FIRST QUARTER. THE GROWTH RATE IN THE THIRD QUARTER SHOULD HAVE BEEN SLIGHTLY FASTER THAN IN THE SECOND QUARTER, PROBABLY CLOSER TO THAT IN THE FIRST QUARTER.
EXTERNALLY, RE-EXPORTS CONTINUED TO PROVIDE THE KEY IMPETUS TO OVERALL EXPORT GROWTH IN THE THIRD QUARTER. DOMESTIC EXPORTS CEASED TO DECLINE, AFTER FALLING FOR FIVE CONSECUTIVE QUARTERS. IMPORTS ROSE MARKEDLY, SUPPORTED BY THE STRONG GROWTH IN RE-EXPORTS AND A FURTHER SHARP INCREASE IN RETAINED IMPORTS. EXPORTS AND IMPORTS OF SERVICES CONTINUED TO INCREASE, ALONG WITH THE EXPANSION IN OVERALL VISIBLE TRADE.
DOMESTICALLY, WHILE CONSUMER SPENDING ROSE MORE SLOWLY IN RECENT MONTHS, INVESTMENT SPENDING SURGED STRONGLY, UNDERPINNED BY ACCELERATED INVESTMENT IN MACHINERY AND EQUIPMENT AND INTENSIVE CONSTRUCTION ACTIVITY NOTABLY ON INFRASTRUCTURE.
IN LINE WITH THE STEADY ECONOMIC GROWTH, THERE WAS A SUSTAINED MARKED INCREASE IN OVERALL EMPLOYMENT.. LABOUR MARKET CONDITIONS REMAINED GENERALLY TIGHT. WHILE A CONTINUED MORE RAPID INCREASE IN THE LABOUR FORCE IN RECENT QUARTERS MIGHT HAVE CAUSED THE UNEMPLOYMENT RATE TO EDGE UP SLIGHTLY, THE UNDEREMPLOYMENT RATE FELL FURTHER.
THE AVERAGE DURATION OF UNEMPLOYMENT NEVERTHELESS HAD NOT WORSENED.
THE
THE
THE RESIDENTIAL PROPERTY MARKET CONSOLIDATED FURTHER IN THIRD QUARTER, AS THE PACKAGE OF MEASURES ANNOUNCED BY GOVERNMENT'S TASK FORCE IN EARLY JUNE AND THE SUCCESSIVE INCREASES IN MORTGAGE RATE SINCE MARCH TOOK EFFECT. SPECULATIVE ACTIVITIES HAD SUBSIDED. FLAT PRICES HAD FALLEN BY AROUND 10-20% FROM THEIR PEAK LEVEL IN MARCH/APRIL. FLAT RENTALS NEVERTHELESS CONTINUED TO RISE STEADILY REFLECTING SUSTAINED END-USER DEMAND.
ON INFLATION, THE YEAR-ON-YEAR RATE OF INCREASE IN THE CONSUMER PRICE INDEX (A) ACCELERATED TO 8.9% IN THE THIRD QUARTER, FROM 7.3% IN THE FIRST QUARTER AND 7.7% IN THE SECOND QUARTER. THIS ACCELERATION WAS CAUSED BY A TEMPORARY UPSURGE IN THE PRICES OF CERTAIN FRESH FOOD ITEMS, MAINLY VEGETABLES, IN JULY AND AUGUST, DUE TO THE SERIOUS FLOODING IN SOUTH CHINA AND SEVERAL RAINSTORMS IN HONG KONG. AS THE SUPPLY AND HENCE PRICES OF VEGETABLES RETURNED ΤΟ NORMAL THEREAFTER, THE INCREASE IN THE CPI(A) EASED BACK FROM THE PEAK OF 9.8% IN AUGUST TO 8.6% IN SEPTEMBER AND FURTHER TO 7.9% IN OCTOBER. TAKING THE FIRST TEN MONTHS OF 1994 TOGETHER, THE INCREASE IN THE CPI(A) AVERAGED AT 8.0%,
APPRECIABLY SLOWER THAN THAT OF 8.5% FOR 1993 AS A WHOLE.
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