TNAG-1361-FCO40-1807-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 158

19.

高度機密

SECRET UNCLASSIFIED

I should

not be accused of misleading optimism. The

Administration remains fully aware of the dependence of the Hong

Kong economy on

external shocks.

exports and consequently of its exposure to Often these will be outside our control or even anticipation. Thus a conservative approach to Hong Kong's finances remains the cornerstone of the Government's total policies. We must always bear in mind that Hong Kong's total

external trade now represents 179% of GDP and exports and

re-exports alone 89%.

1984 Economic Background

20.

In 1984 the Hong Kong economy experienced the second consecutive year of export-led growth consequent on strong expansion in the United States and improvements elsewhere. Exports to China expanded rapidly, as its new economic policy

has enhanced bilateral trading opportunities. In real terms our domestic exports increased overall by about 17%, re-exports by about 30%, and imports by about 15% (4). The visible trade gap narrowed to under 1%, the smallest for more than 25 years equivalent to less than 2 days' imports.

21.

Private consumption expenditure grew by 5% in real terms. The general increase in economic activity and the return

of confidence helped to stimulate a recovery in private

investment in plant and machinery throughout the year. This grew by 26%, with most of the increase reflecting a catching up on two very poor years. Private expenditure on building and construction, however, fell by 9.5% in real terms. Apart from a relatively high take-up of finished property the market remained soft, though there were signs of improvement towards the end of

the year.

(4) 1984 Economic Background paragraphs 2.4, 2.13 and 2.20.

re-exports together increased by about 22%.

Exports and

G.F. 316

SECRET & £#*

CLASSEM