XN000022-1996-05-06 — Page 4

3.

Gross domestic product for the Fourth Quarter of 1995

Hong Kong's Gross Domestic Product (GDP) grew by 3.2% in real terms in the fourth quarter of 1995 over the same quarter in 1994, according to the preliminary estimates released today (Monday) by the Census and Statistics Department.

This modest growth was brought about by continued sluggish consumer spending, a slow-down in private sector investment expenditure and a decelerated growth in exports. For 1995 as a whole, GDP grew by 4.6% in real terms.

Amongst the major GDP components, re-exports registered a slower growth of 97% in the fourth quarter of 1995 in real terms over a year earlier, following strong increases in the first three quarters.

On the other hand, domestic exports decreased by 5.2% in real terms over the same period after recording increases for four consecutive quarters.

Exports of services increased by 9.1% in real terms over a year earlier, supported by continuing growth in tourism and trade-related services.

Imports of goods and services increased by 8% and 3.7% respectively in real terms in the fourth quarter of 1995 over a year earlier.

On investment spending, gross domestic fixed capital formation recorded an increase of only 2.4% in real terms, following a double-digit growth in the third quarter.

Within this component, construction output in the public sector increased by 72% while that in the private sector decreased by 5.8%. As a result, overall expenditure on construction showed little change from the fourth quarter a year earlier.

On the other hand, expenditure on machinery and equipment rose by 7.1% in real terms over a year earlier, showing a modest growth after the large increases in earlier periods.

1995.

The accumulation in stocks further moderated during the fourth quarter of

Consumer spending remained sluggish. Private consumption expenditure grew by only 0.8% in real terms in the fourth quarter over a year earlier.