TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 174

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benefit

dollar.

substantially

from the weaker Hong Kong

The forecast growth rate of domestic exports

to Japan remains at 16%, the budget forecast; we would

like to do better.

20.

As regards our largest market, the United

States, its economic growth slowed down sharply in the

second quarter of 1986 and our domestic exports grew

by only 5% in the first half of the year. Although

some improvement in economic growth is expected in the

second half of the year, I have revised downwards the

forecast growth rate of domestic exports to the United

States to 5%, from the budget forecast of 10%.

1

1

21.

Reflecting the measures adopted by China to

control its imports and foreign exchange spending,

domestic exports to China fell by 9% in the first half

of the year. For the year as a whole, domestic

exports to China are expected to decline by 4%,

compared with a decline of 7% in the budget forecast.

Domestic exports to the rest of the world are now

expected to grow by 15%,

compared

with 78% in the

budget forecast.

/22.

After a