་
by China's
recently introduced tighter controls on the
use of her foreign exchanges.
10.
During the first half of 1985 Hong Kong's total
imports from all countries grew by only 9% in real
terms with the result that a visible trade surplus was
recorded during the period January June compared with
a visible trade gap in the same period in 1984.
Despite movements
11.
in the exchange rates of the US
dollar against other major currencies, the exchange
rate of the Hong Kong and US dollars has remained close
to the linked rate of HK$ 7.80. Following a weakening
of the US dollar during the summer, the rate of
exchange moved briefly
to around HK$ 7.72. However,
with the lowering of interest rates it returned to its
linked rate. The Financial Secretary of the Hong Kong
Government recently reaffirmed that the link will be maintained at HK$ 7.80. Interest rates in Hong Kong
now stand at around 7%.
12.
Domestic consume r demand this year has been
sluggish as the weaker export performance began to have
an
effect on the economy. However, this has not yet
produced any measurable rise in
the
of
rate of
un employment which, at 3.2% for the first half of 1985, showed no change over the figure for the corresponding
period for 1984 and which in Hong Kong can
Hong Kong can be regarded
as full employment. The rate of inflation remains low at about 3.2%. The property and construction markets
have shown clear signs of revival and the return
confidence among developers following the collapse of
market three years ago, has resulted in s ome
favourable lanu sales. Private sector expenditure
building and construction is now forecast to grow by 5%
in real terms during 1985 as against a budge forecast
increase of only 2%. Although it has since fallen, the
Hang Seng Index (stock exchange) recently reached a four year high and improved levels of new investment in
the
on
12
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