TNAG-1136-FCO40-1416-Address-by-Sir-Edward-Youde--Governor-of-Hong-Kong--to-the-L-1982 — Page 41

12.

Nevertheless continuing growth even at a reduced rate has meant that we appear to be avoiding serious unemployment.

rate in March this

this year The unemployment

Was only 3.5%, significantly less than the 4.19 recorded at the same time last your. Some factory workoce are working shorter hours in view the manufacturing of the sluggishness of export demand but

sector

pçale.

on

a whole is not shedding labour 2.3

any substantial Wages and salaries have increased all round in real terms, partly because the rate of inflation has fallen.

13.

11% per

annus

in

about Inflation is now running et terms of consumer prices, after remaining at around 15% for two

is partly a This trend

reflection of the years.

general slowing down in the rate of world inflation, but favourable developmento within the economy have also contributed. prescure of demand on domestic resources has moderated, growth rates of the money supply and of credit have slowed

Interest

cased significantly.

rentals for

have ratos

and lower

The

The

or

Stable

property have

also

down.

Falling prices contributed to easing inflation, but I realise that, should the

exchange

the Hong Kong dollar weaken further

inflationary pressures will reappear.

value of

(b) The Public Finances

14.

This reduced growth rate of our economy will have its effect on the public financos. Revenue collections so far this year have not reached expectations, due largely to shortfalla in the yields from land sales, and earnings and profits tax. Total expenditure is higher than estimated due partly to the

of more

and other purchase of

land then expected

unavoidable

capital expenditure, but mainly to the annual adjustment civil service. pay. It now seams unlikely that this year the budgetted surplus of $2.3 billion will be achieved, and present indications are that this year'e accounts will only break even.

to

6

/15. The

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