RESTRICTED
45,
of the Hong Kong dollar against
Except for one or two temporary aberrations the exchange rate
the US dollar has remained stable
around the linked rate of HK$7.80 to US$1 during the year However, reflecting the depreciation of the US dollar, the effective exchange
rate index of the Hong Kong dollar fell from 70.6 in end-December
1985 to 64 8 in end-December 1986.
46,
•
Despite the depreciation of the Hong Kong dollar, the rate of
inflation has remained low. Consumer prices increased by an average
of 2.7% in the first eleven months of 1986 over the same period last
year.
47.
As
result a
of
was
in recent
the improved economic performance in months the forecast growth rate of the gross domestic product (GDP)
for 1986
revised upward from 4.5% at the time when the budget
for the 1986/87 financial
to announced
mid-September, and conservative. In contrast, in 1985 the estimated growth rate of the
DP was 0.8%
even
year was
this
forecast revised
may
5.6% in
prove
to
be
(b)
Investment
48.
Capital investment in Hong Kong is mainly undertaken by the
The role of the Hong Kong Government
sector
largely
private confined to ensuring the provision of the necessary infrastructure,
and the
is
investment
can
environment within
seek to maximise their
preservation
of
which
private
business
returns
infrastructure,
the
Hong
adequate support is provided
favourable a
enterprises
In addition to
Kong
to
providing much of the physical
seeks
to
ensure
Government
that
to investors in the availability of new
industrial
workforce
and technology
of
a
well-trained
and
well-educated
49.
half
in
After declining in the second half of 1985 and in the first
the of 1986, retained imports of capital goods picked up third quarter of 1986. Of particular note were the retained imports of industrial machinery for use in the manufacturing sector,
terms in the first nine months of 1986, after a
as a whole.
grew by 23% in real
decline of 4% in 1985
which
RESTRICTED
Page 255Page 256
No comments yet.
Private notes are available after approval.