TNAG-1762-FCO40-2516-Economic-situation-in-Hong-Kong-1988 — Page 7

HONG KONG ECONOMY: ITEMISED BRIEF

(Source: World Bank; HKG)

Mr Monio Vir.

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BASIC

- Gross National Product (GNP) 1987: US$45.3 bn. Roughly equivalent to, eg, Greece or Thailand.

GNP/capita 1987: US$8260. Roughly equivalent to New Zealand.

Growth of GNP: 1987: 10.8%

1982-87 average: 6.8%

(Note: growth is very susceptible to international trading conditions.)

Unemployment: 1987: 1.9%.

Inflation (CPI(A)): 1987: 5.58

1988 2nd Quarter: 7.0%

1977-1987 average: 8.7%

Exchange rate: Since 1984 linked to the US$ at the rate of HK$ 7.80 = US$1.00.

TRADE (1987)

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Total Exports (fob) US$48 bn: Total Imports: US$48 bn.

Visible trade surplus in 1987 US$13 million

Economy dominated by trade. Total exports/GNP 1.68 (1987)

Exports both of domestic products and re-export trade. exports roughly equally divided between two categories.

Domestic exports: Major markets:

Total

USA (37%); China (14%) [cf UK (7%)]

Major commodities: Clothing (33%);

Textiles (8%);

Watches and clocks (7%)

Imports: Major suppliers: China (31%); Japan (19%)

Economic Advisers

26 October 1988