TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 164

SPEECH BY THE HONOURABLE P. JACOBS.

FINANCIAL SECRETARY

TO THE HONG KONG SOCIETY OF SECURITY ANALYSTS ON 17 SEPTEMBER 1986

Mr Chairman, Ladies and Gentlemen,

I

to

am grateful to

to the Hong Kong Society of

Security Analysts for giving me the opportunity

speak at this excellent dinner.

2.

In his budget speech in February my

distinguished predecessor, Sir John Bremridge,

indicated improved prospects for economic growth for 1986, as compared with the previous year. He expected

a significant recovery in domestic exports, which

would more than offset a slowing down in re-export

growth. Domestic demand was expected to show moderate

growth, SO that economic growth in 1986 was expected

to be largely export-led. He predicted that the rate

of inflation might pick up a little, reflecting the

effect of a weak US dollar. Whilst Sir John claimed

to be suspicious about the likely accuracy of

forecasts, happily this time the performance of the

economy in the first half of this year was generally

at least as good as he said it might be.

13.

In the