XN000022-1995-03-01 — Page 12

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1994 economic success benefits whole community

Economic success last year has benefited the whole community, but rising prices remained a cause for concern, the Financial Secretary, the Hon Sir Hamish Macleod, said.

Reviewing the economic performance last year in his 1995/96 Budget Speech, he said the workforce continued to enjoy virtually full employment, higher real incomes and a rising standard of living.

GDP grew by 5.5 per cent, marginally lower than the most recent forecast of 5.7 per cent but still a considerable achievement.

Investment spending grew by 13 per cent, almost double the average annual rate over the past decade.

Total exports grew by 10 per cent and re-exports by 14 per cent. Hong Kong is the world's eighth largest trading community, and likely soon to move even further up that particular league table.

Exports of services grew by 7.5 per cent. Hong Kong is probably the world's 11th largest exporter of services.

Reflecting the expansion of the financial services, the value of Hong Kong dollar private sector debt issues more than tripled, to $60 billion.

In last year's Budget, inflation was forecast to be 8.5 per cent for the year.

"We did rather better than expected, with an inflation rate of 8.1 per cent. But the pressure on prices remains too high for us to be complacent," Sir Hamish said.

Explaining the foundations on which all four of his budgets have been built, he said they were entirely consistent with the principles that had guided Hong Kong's economic success for almost half a century.

added.

They are entirely consistent with the principles set out in the Basic Law, he