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3-13 11:41
000
GOVT HOUSE
HK
construction
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activity ano a rapid rise in land prices,
accompanied by an equally rapia increase in credit and
considerable speculation. Towards the latter part of
period the economy was subject to significant
significant overheating
and inflationary pressures.
of the
13.
This inflationary boom subsided in 1982 and 1983,
partly because Hong Kong's trade had begun to be affected
by the world recession following the second 011 price
explosion, partly because the speculative fever in the
of the
property market had begun to subside of its own accord, but
also because of concern over the political future of the
territory. This commenced the most recent phase of
development of Hong Kong's economy. It has been divided
into two distinct periods: ä relative slowing down in
economic growth
hetween
1987 and 1985 and
acceleration from 1986 onwards.
renewed
14.
The most difficult period was the autumn of 1983
when the Hong Kong dollar, which had floated freely since
1974, came under severe speculative pressure. To deal with
situation, it was linked to the U.S. dollar at a new
fixed rate of HK$7.80=US$1.
this
15.
During this period of uncertainty, however, а new
and increasingly important factor began to appear in Hong
Kong's economy. This was the rapid increase in trade and
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