[HKIAIJ]
SECRETARY OF STATE'S MEETING WITH DR STEGER: 27 FEBRUARY 1986
Hong Kong Trade/Economy
Essential Facts
1.
Although the Hong Kong Government's earlier forecast of
7.2% economic growth in 1985 was not
not achieved, during the year
the economy grew
by approximately
3-3.5%.
lower
domestic
to
was also
The
in growth
than forecast in
years
10
of
exports during 1985
the budget although total exports during the year rose, reflecting the continued expansion of the re-export trade.
a certain extent the fall in domestic exports can be attributed
inevitable an
levelling-off following two
remarkable growth. But there was also a decline Hong Kong's major markets during the year. The appreciation of
the Hong Kong dollar, through its link with the US dollar, against other currencies reduced the competitiveness of Hong Kong's exports in the world's markets and also contributed.
2.
devaluation
in demand from
The Long term outlook for 1986 appears good. the
of the US dollar last autumn has improved Hong
Growth in competitiveness
the US is
ог to grow by 5%
expected to resume its
have markets
shown
trend.
Kong's
in export markets.
to allow the Hong Kong economy expected
from during 1986 and demand
the PRC is
upward
Property and construction
more
clear signs of revival. The Hang Seng Index recently reached
an
all
time high, improved levels of
manufacturing sector were recorded
n ew investment in the
following during 1985 and
three years of budget deficit, the Government expects to Return to balanced budgets in 1986.
No comments yet.
Private notes are available after approval.