TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 160

11.2.87

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18.

Capital investment is expected to grow by just

over 9%, with roughly the same growth rates for both the

private and the public sectors (7).

19.

Consistent with these forecasts of domestic and

external demand, the growth rate of imports for 1987 is

expected to be 11%. We shall be running a visible trade

deficit of about $8 billion, although the other components

of the current account are expected to be in net surplus.

(7)

The forecast growth rates for the components of capital investment vary. Expenditure on plant and machinery and expenditure on building and construction are forecast to increase by 10.5% and 9.6% respectively, representing an acceleration over their growth rates in 1986. Within the latter component, public sector expenditure on building and construction is forecast to increase by 8.2%, as construction work on such major public works projects as the Route 5 Highway linking Sha Tin with Kwai Chung and the Tuen Mun light rail transit system continues. Private sector expenditure on building and construction is forecast to increase by 10.3%, reflecting a higher level of private sector building activity generally and the intensification of works on the Eastern harbour Crossing.

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