TNAG-1873-FCO40-2661-Relations-between-Hong-Kong-and-China-1989 — Page 130

GF 323

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9

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(12)

that recorded in the first half (US$1.15 billion)

The slow down in the growth rate of exports to 20% in the

third quarter from 26% in the first half was probably

related to inflation in China causing resources to be

shifted to its domestic sector from the external sector.

On the other hand, with aggregate demand in excess of

aggregate supply more imports may have come in to meet

part of the unsatisfied demand existing in China's

economy, resulting in the sharp acceleration of the growth

rate of imports from 19% in the first half to 34% in the

third quarter.

13.

At the end of September 1988 China's foreign exchange reserves amounted to US$18.0 billion, about the

same as three months earlier.

China's foreign exchange

(12)

Exports

Growth

rate over the

same

Imports

Growth

rate over the

same period in 1987

Visible

trade balance (US$ bn)

period

Value (US$bn)

in 1987

Value

(*)

(US$bn)

( 3 )

1988 1st half

21.03 26 (20.22) (16)

22.18

19

(15.63)

(24)

-1.15 (+4.59)

Q3

11.88 20 (9.79) (10)

14.14 (9.66)

34 (28)

-2.26 (+0.13)

Q1

-

3

36.32

24 (25.29) (26)

-3.41

(+4.72)

32.91

25 (30.01) (14)

Source: China's General Administration of Customs Statistics.

China's Ministry of Foreign Economic Relations and Trade

Figures in brackets are trade statistics compiled by China's Ministry of Foreign Economic Relations and Trade which are considered less reliable for macroeconomic analysis.

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