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and the relative competitiveness of Hong Kong's products in the
major overseas markets.
29. The rapid growth rate of the economy resulted in a strong
demand for labour. For most of the year, unemployment was at a
record low rate of 1.8 per cent and the under employment rate was
only one per cent. As a result earnings have risen significantly.
the twelve months ending in June, the earnings of workers in
manufacturing and services rose by 13 per cent and 12 per cent
respectively in money terms, or 7 per cent and 6 per cent
respectively in real terms.
In
30. The high pressure of demand in the economy, coupled with the
depreciation of the overall value in the Hong Kong dollar, has
increased the level of inflation. Comments were made to the effect
that the Hong Kong dollar was undervalued, but the Hong Kong
Government have made clear their intention to maintain the link
between the Hong Kong dollar and the US dollar at the present
rate. In the first ten months of 1987, the average increase in
prices over the corresponding period in 1987 was 5.2 per cent.
1986 as a whole, the average increase was 2.8 per cent.
(b)
Industry
In
31. The Hong Kong Government have, for many years, given a high
priority to ensuring that the territory's industry is provided with
adequate infrastructural support, particularly through the provision
of energy, water and industrial land. Although individual firms are
left to decide for themselves what to manufacture and sell in
response to world market forces, and how much to invest in new plant
and equipment, the Hong Kong Government have in recent years been placing more emphasis on providing support services to assist
industry to improve its productivity and the quality of its
products. Examples are the establishment of a Standards and
Calibration Laboratory, a Laboratory Accreditation Scheme and a
Design Innovation Company.
32.
In addition, following detailed studies on the needs of
individual industries which have been undertaken in recent years by
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