XN000022-1995-03-01 — Page 13

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This means that not only are they the economic compass which has steered Hong Kong safely through times of turbulence as well as its boom years, but there is also every reason to be confident that they will continue to do so, he said.

Sir Hamish said consensus capitalism, the search for a balance between the market economy and an adequate welfare safety net, had been at the heart of his approach to the preparation of the four budgets.

End/Wednesday, March 1, 1995

Economy will continue to do well in 1995

The Financial Secretary, the Hon Sir Hamish Macleod, believed that overall, the economy would continue to perform well this year.

Presenting his fourth and last Budget to the Legislative Council today (Wednesday), Sir Hamish said Hong Kong appeared to have established a pattern for the 1990s of steady, sustainable growth, one which is high by the standards of other advanced economies.

"Although overall growth in 1995 looks like being similar to that in 1994, it is of course true that, as always, we must be prepared to respond at short notice to sudden shocks and reverses in world trading conditions," he said.

Sir Hamish forecast the following real increases for 1995:

GDP will rise by 5.5 per cent.

GDP per

head will rise to over US$24,000.

Total exports will rise by 13 per cent. Domestic exports will increase by 2 per cent and re-exports by 16 per cent.

Exports of services will grow by 9 per cent.

In addition, Hong Kong's trade in goods and services will continue to show a positive balance.