TNAG-1267-FCO40-1616-Economic-situation-in-Hong-Kong-1983 — Page 14

CHAPTER 1: OVERALL VIEW

Introduction

1.1

This report for the third quarter of 1983

updates the analysis in the Half-Yearly Economic Report 1983 and assesses subsequent developments using currently

available statistics.

Exports and domestic demand

1.2

a

number of

The export sector has clearly rebounded since the beginning of this year, mainly due to the recovery in the US economy. The economic performances and outlooks of other major export markets have also improved. The year-on-year growth rate in real terms of

domestic exports accelerated

about 19% in the third

quarter, from 14%

14% in the second quarter and 38% in the

first

(paragraph year

this

to

2.1).

The

of quarter depreciation of the Hong Kong dollar (paragraph 3.11), coupled with the rather favourable shifts in the internal cost/price structure, has enhanced Hong Kong's external competitiveness.

1.3

Given that the year-on-year growth rate in real

terms of retained imports of raw materials and semi-manufactures increased rapidly in the third quarter of this year (paragraph 2.8) and that the volume of orders held by a selection of large manufacturers continued to be encouraging (paragraph 5.2), it is likely that domestic exports will remain strong in the fourth quarter.

1

/ 1.4 Domestic