TNAG-1984-FCO40-2817-Presentation-of-UK-policy-on-Hong-Kong-to-the-media-1989 — Page 72

VI:

THE HONG KONG ECONOMY

GDP grew in real terms by 11.8% in 1986, 13.5% in 1987, 7.5% in 1988. Expected to grow by 6% in 1989.

has averaged 8.7% per annum.

Per capita GDP in 1988 was US$ 9,605:

Japan and roughly the same as Singapore.

Growth over last 20 years

second in Asia only to

Private investment in plant and machinery increased by 28% in real terms in 1987. Unprecedented level of private investment in

period 1986-87.

Retained imports of industrial machinery for manufacturing (a key indicator of investment in manufacturing sector) increased by 26% in real terms in 1986, 18% in 1987, 13% in first nine months

of 1988.

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Domestic exports grew by 16% in real terms in 1986; 23% in

1987; 8.9% in 1988.

Re-exports grew by 14% in real terms in 1986; by 46% in 1987; by

45.7% in 1988.

Unemployment is at a record low of 1.3%.

Steady increase in foreign investment in manufacturing in Hong Kong (HK$ 21 billion in 1987).

Major projects

Construction of third University has begun. Due to take in

students in 1991.

first

New light rail system between Tuen Mun and Yuen Long.

ALRAAK