TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 158

11.2.87

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14.

For 1987, I expect the growth rate of GDP to be

lower than that in 1986, but still satisfactory (6). The

growth rate of domestic exports is likely to slow down,

while that of domestic demand is expected to increase.

Economic growth in our major overseas markets, including

the United States, is expected to be slightly faster than

last year.

The quota restraint limits particularly for

the United States market will probably constrain export

performance. Moreover, if the rate of depreciation of the

US dollar moderates in 1987, as seems likely, the gain in

the price competitiveness of our exports may be less than

in 1986.

15.

As regards China, our trade has been affected by

measures adopted to restrict imports and to control the

use of foreign exchange reserves. Whilst China will need

to import in order to implement its modernisation

programmes, some control measures seem likely to continue.

(6)

See 1987 Economic Prospects'.

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