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Confidence in continuing economic growth well based: FS
The Financial Secretary, Sir Hamish Macleod, today (Wednesday) assured industrialists that the Government's confidence in good economic growth continuing was well based.
Speaking at a lunch meeting of the Federation of Hong Kong Industries, Sir Hamish said: "It is worth remembering that there has not been a single year in the past 30 when real GDP (Gross Domestic Product) has dropped in Hong Kong; by comparison, there have been six such years in both the UK and the US."
"We have a truly remarkable record, and we have good reasons to expect it to continue," he added.
On the economic performance, Sir Hamish said against some less good statistics, the apparently overlooked fact was the robust GDP growth and much better than expected trade figures.
"An encouraging 5.9 per cent real growth in GDP was recorded for the first quarter of 1995, compared to the same period in 1994.
"Domestic exports, in particular, have recorded significant growth, up about seven per cent in real terms in the first half of 1995. With total exports up 15 per cent," he said.
Sir Hamish said this was a pretty dramatic improvement over the 1994 figures of domestic exports down two per cent and total exports up 10 per cent. And of course there would be a spin-off from these good trade figures into trade related services.
On the linked exchange rate system, Sir Hamish stressed once again that the system would stay.
"The fact is it has been a great success, and its continuation is unambiguously supported by China," he said.
Sir Hamish said recent developments in relation to issues under discussion with China were also encouraging.
These included the resolution of the financing of the airport and airport railway, the agreement on the Court of Final Appeal, the practical discussions in the Infrastructure Co-ordinating Committee and the visit of the Chief Secretary to Beijing.
End/Wednesday, August 9, 1995
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