TNAG-1012-FCO40-1262-Address-by-Sir-Murray-MacLehose--Governor-of-Hong-Kong--at-t-1981 — Page 23

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in real terms.

Re-exports have continued to grow rapidly in 1981, so that

total exports will probably show an increase of about 15% over 1980

Nevertheless the growth rate of total imports in value.

terms in 1981 so far has been somewhat faster than that of total

exports. But in terms of Hong Kong's overall trade position, the

visible trade account continues to show a fair degree of stability,

with the visible trade "gap" having widened only slightly in percentage

terms.

21.

The relative stability in the economy is also evidenced by

there being no obvious imbalance between the demand for and the supply

of domestic resources with the obvious exception of housing and land.

*

In March this year 2,365,000 people were employed in Hong Kong,

162,000 more than in March last year, But in spite of this strong

increase in demand for labour, the growth of supply continued to be

rather too rapid for the economy to absorb, and there was a further

increase in the unemployment rate to 4.1% in March this year, though it

:

has probably not increased since.

22.

There are also signs of easing in the property market and

of a fall-back in prices. On the one hand, demand is being dampened by high prices and interest rates. On the other hand, supply,

particularly of commercial property, is now meeting the previous

excess demand.

Land prices have similarly begun to ease in most

:

areas. To the extent that the former price levels in the property.

market were due to speculation the fall-back is to be welcomed.

.

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