TNAG-1267-FCO40-1616-Economic-situation-in-Hong-Kong-1983 — Page 172

CHAPTER 1: OVERALL VIEW

Introduction

1.1

This report

provides

additional

analyses of the

economy in 1982, which were not possible earlier because

certain statistics for the whole year were not available when

the 1982 Economic Background was written. It also assesses

subsequent economic developments in the first quarter of 1983.

Exports and domestic demand

1.2

Domestic exports began to recover slightly in the first quarter of 1983, with a growth rate. of 2% in real terms

compared with the first quarter of 1982 (paragraph 2.1). The

trend of declining growth rates in real

real terms

terms of domestic

exports has been reversed at the turn of the year. The volume

of orders held by manufacturers improved slowly but gradually

during the first quarter (paragraph 5.3) and there are

definite indications that two of Hong Kong's major markets,

the United States and the Federal Republic of Germany, are on

the path of economic

economic recovery. То many manufacturers, the

export prospects are now brighter (paragraph 5.4).

1.3

However, reflecting the weak domestic demand,

goods and of consumer goods

first quarter of 1983 compared

retained imports of capital

declined in real terms in the

with the first quarter of 1982 (paragraph 2.7).

The demand for and supply of domestic resources

1.4

For 1982 as a whole, the supply of labour grew at

slightly more rapid rate than the demand for labour. Both the

unemployment rate and the underemployment rate rose. These

trends continued into

1983.

However, because

changes in

1

/unemployment