TNAG-1267-FCO40-1616-Economic-situation-in-Hong-Kong-1983 — Page 167

REAL TERMS,

TROM 2 PER CENT PREDICTED FIN FREBRUARY.

(B) RE-EXPORTS EXPECTED TO GROW BY 9 PER CENT, IN REAL TERMS.

C) CONSUMER SPENDING EXPECTED TO GROW BY 4 PER CENT.

(D) UNEMPLOYMENT, WHICH PEAKED AT 5.2 PER CENT IN APRIL DECLINED TO

3.9 PER CENT AT THE END OF JULY.

.

(E) NO PLANS TO ABOLISH THE GOVERNMENTS 10 PER CENT WITHOLDING TAX

ON HONG KONG DOLLAR DEPOSITS.

(F) GOVERNMENT REVENUES AND EXPENDITURE WERE BELOW PREDICTIONS BUT

HNDICATE THAT THE BUDGETED FORECAST DEFICIT OF HK DOLLARS

3.2 BILLION WILL BE MET.

(G) PUBLIC WORKS SPENDING WILL CONTINUE TO HNCREASE BUT PRIVATE

SECTOR EXPENDITURE ON BUILDING AND CONSTRUCTION HS EXPECTED TO

DECLINE BY 15 PER CENT. PUBLIC SECTOR SHARE OF BUILDING AND

CONSTRUCTION OUTPUT WILL HNCREASE FROM 50 PER CENT IN 1982 TO

56 PER CENT IN 1983.

(H) THE FORECAST GROWTH RATE OF PRIVATE SECTOR EXPENDITURE ON PLANT

MACHINERY AND EQUIPMENT REWISED DOWNWARDS FROM 4 PER CENT TO -

ZERO.

COPY OF SPEECH FOLLOWS BY BAG.

ADAMS

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