TNAG-1942-FCO40-2768-Internal-economic-situation-in-Hong-Kong-1989 — Page 49

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1

Press Release

Economic Situation in the First Quarter of 1989 and Updated Forecasts of GDP and Prices for 1989

The Hong Kong economy was generally

buoyant during the first quarter of 1989, but

there was some slowing down in the growth rates

of domestic exports and, to a lesser extent,

re-exports. The unemployment rate remained at

an historic low level, while the rate of

inflation increased further.

2.

In issuing the First Quarter Economic

Report 1989 today, the Government Economist said

that using the information in the Report and

other recent data a review had been made of the

forecasts of the gross domestic product (GDP)

and of price trends for 1989. The review

concluded that although adjustments were

required in some of the components, the

forecasts of the rates of increase of the GDP

(at 6%), the GDP deflator (at 9%) and the

Consumer Price Index (A) (at 8.5%) made at the

time of the Budget could remain unchanged.