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5. LOOKING AHEAD TO 1985, THE HONG KONG ECONOMY REMAINS AS ALWAYS VULNERABLE TO EXTERNAL EVENTS, AND IT IS LIKELY THAT THE WORLD ECONOMY WILL GROW RATHER LESS RAPIDLY. THE LATEST STATISTICS ON ORDER-BOOK POSITIONS AND ON RETAINED IMPORTS OF RAW MATERIALS AND SEMI- MANUFACTURES SUGGEST THAT WHILE THE SHORT TERN PROSPECTS FOR DOMESTIC EXPORTS REMAIN GENERALLY GOOD, THERE MAY BE A SLOWING DOWN IN THE GROWTH RATE OF DOMESTIC
EXPORTS IN THE COMING MONTHS.
6. THE ASSURANCES OF STABILITY AND CONTINUITY PROVIDED BY THE DRAFT AGREEMENT ON THE FUTURE OF HONG KONG WILL WILL IMPROVE INVESTMENT SENTIMENT. AS A RESULT HIGHER INVESTMENT IN PROPERTY AND IN PLANT AND MACHINERY, BY BOTH LOCAL AND OVERSEAS INVESTORS, SHOULD EMERGE AND INVESTMENT DEMAND SHOULD INCREASE NEXT YEAR.
7. THE RATE OF INFLATION WILL PROBABLY STABILIZE SLIGHTLY OVER
US LEVELS, UNLESS A SHARP DEPRECIATION OF THE HONG KONG DOLLAR OCCURS IN 1985 (ALONG WITH THE US DOLLAR UNDER THE PRESENT
LINKED EXCHANGE RATE SYSTEM).
8. IT REMAINS GOVERNMENT'S AIM TO PRODUCE A BALANCED BUDGET IN 86/37.
HADDON-CAVE
MINIMAL HKD
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