TNAG-1301-FCO40-1657-Visits-by-Richard-Luce--Minister-of-State-for-Foreign-and-Co-1984 — Page 121

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rate of the GDP in real terms was 10.1%. The growth rate of real

income per capita was affected by the high growth rate of population

in 1978-80. Nevertheless, as a result or a growth rate of 7.4% in

the 1970's, real income per capita by 1981 was more than twice that

in 1971, (giving Hong Kong the highest per capita income in Asia,

after Japan). Recently, the world recession has meant a reduction

in growth, which was 2.4% in real terms in 1982, and is projected at 51-6% for 1983. Domestic exports are now picking up strongly, and in 1983 as a whole increased by 26% over 1982 level. Currently the annual inflation rate is about 10% and the seasonally adjusted unemployment rate is 4%.

2.4

Hong Kong is almost totally lacking in natural resources and,

relative to its population, is very short of usable land. The manufacturing sector is therefore completely dependent on imported raw materials, semi-manufactures and capital goods. Other sectors

of the economy are almost equally dependent on imported inputs. The

bulk of Hong Kong's requirements of foodstuffs and consumer goods is also imported. Thus the total value of Hong Kong's visible trading

transactions is just on twice the value of the GDP, and much more than twice if invisible imports and exports are added in.

2.5 The value of Hong Kong's exports of goods in 1983 was

HK$160,703 million (approx. £14,600 million). Re-exports accounted for 35% and domestic exports for 65%. The principal domestic exports in 1982 were:

Textiles and Clothing

40%

Watches and Clocks

8.5%

Plastic Toys and Dolls

7.5%

Radios

3.2%

Domestic Machinery and Appliances

3.2%

The principal markets were:

United States

EC

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37.5%

23.5%