HONG
KONG
ECONOMY
Following the signature of the Sino-British agreement,
re
་
confidence was established and the Hong Kong
Lest
grow th in 1984
economic
1985 was a di sappointing
amounted to 9%.
economy and
comparison,
In
y ea r but the e co nom y remains
buoyant and the long tem outlook for 1986 is good.
Background
September 1984
The removal of doubt ОП the future of the territory
Yollowing the signing of the Hong Kong agreement in
resul ted in increased investor confidence
and substantial economic expansion. In compari son 985 was
a di sappointing y ear. Real GDP growth amounted to under 1%
and domesti
ex po rts declined by 5%. The fall in domestic
be attributed to two main factors. The slow economic grow th in
ex po rt s
down in
markets
can
>
the
particula Ny
strength of the Hong Kong
Hong Kong's major ex po rt
United States and the relative
dollar, th rough its links with
of the territory's
the United States dollar, against other currencies in early
1985
which reduced the competitiveness
ex ports i in the world's markets.
The long tem outlook for 1986
appears to be good. The
devaluation of the United States do Nar last Autumn ha s
improved Hong Kong's competitiveness in Export markets and
domestic ex po rt perfo man ce should further benefit from the
ex pected
grow th in the US and other major e co nomi es.
Recent budget forecast that domestic ex po rt s
during the year by approximately 7.5%.
an expected grow th
should grow
together with
ra te for re- ex po rts of 4%, gives a
This
growth forecast of total ex po rt s for 1986 of approximately
A modest figure by
by previous Hong Kong standards but
respectable when compared to other major economies.
6%.
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