TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 179

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30.

Consistent

with the above revisions, the

forecast growth rate of imports is revised upwards to

8%, from the budget forecast of 6%. As regards net

exports of services, the budget forecast growth

growth rate

of 9% now looks optimistic and a downward

downward revision to

4.5% has been made.

31.

The net result of the above revisions

particularly those in relation to domestic exports is

to increase the forecast growth rate of the GDP in

1986 to 5.6%, from the budget forecast of 4.5%. This

growth, if realised, will represent a welcome

achievement (3). GDP per capita at current prices is

forecast to be nearly $52,500 (or US$6,700),

3

1

representing a growth rate of 7% in money terms

in real terms.

or 4%

32.

The rate of inflation

was also low in the

first half of the year. The year-on-year rate of

increase in the Consumer Price Index (A) was 2.7% in

the first seven months. The forecast rate of increase

(3). With a

With a forecast increase in

increase in the GDP deflator of 3% which is slightly lower than the budget forecast, the revised forecast of expenditure on the GDP in 1986 at current prices is $290 billion, representing a growth rate of 9% in money terms.

/in prices