XN000022-1995-11-06 — Page 3

- 2

-

"We have been assured that at Osaka, we will be presented with concrete and achievable plans complete with mid and long term objectives, target dates for specific measures and processes for reviewing progress." Mr Tsang added: "Our vision for Hong Kong in the 21st century is that of a vital and dynamic service centre, playing an active part in the development of the Region through APEC.

"APEC Leaders have articulated a vision of free trade and investment - the unimpeded flow of goods, services and capital - for the world's most dynamic region. We embrace that vision wholeheartedly.

"These developments can only serve to strengthen Hong Kong's role as the business hub of the Far East - New York, London, Amsterdam and Venice all rolled into one place."

End/Monday, November 6, 1995.

Gross Domestic Product for second quarter 1995

In the second quarter of 1995, Hong Kong's Gross Domestic Product (GDP) grew by 4.8% in real terms over the same quarter in 1994, according to the preliminary estimates released today (Monday) by the Census and Statistics Department.

Re-exports, growing at 14.9% in real terms over a year earlier, continued to provide the main impetus to overall economic growth in the second quarter. Domestic exports also recorded a sustained increase, by 3.3% in real terms over the same period.

Exports of services continued to show a strong increase, by 13.1% in real terms over a year earlier. While tourism recovered steadily, offshore trading activities and various trade-related services surged further.

On investment spending, gross domestic fixed capital formation picked up to a 7.6% increase in real terms in the second quarter. Within this component, construction output in the public sector staged a strong rebound, after a temporary slow-down in the first quarter. Private sector building activities remained weak, however. Putting these together, overall expenditure on construction still grew notably by 8.9% in real terms. Expenditure on machinery and equipment remained robust, rising by 15.8% in real terms in the second quarter over a year earlier.

There was a further accumulation in stocks during the second quarter of 1995, reflecting mainly the build-up in stocks of raw materials for production and for infrastructure construction.

:

4