- 3-
although
healthy by world standards, will be modest in terms
We estimate that GDP will
of our own past
performance.
increase this year by 2.5% in real terms.
4.
Fortunately,
Hong Kong learnt the lessons of the
oil crises of the 1970s. In 1979, oil was our principal
source of energy. Today, by contrast, we generate virtually
of our electricity from coal.
all
successful adjustment to
Because of this
our energy sources, we are better
placed than many other economies to cope with the sluggish
world markets we must expect in 1991.
5.
Nevertheless, we must accept that, partly because
of the Middle East crisis, we face а harsher economic
environment in which it will be much tougher going to defend
Our share of existing markets and to develop new business.
То retain their competitive edge, firms will need to make
use of existing resources.
better
This means higher
standards of management; restraint in setting prices and
profit margins; and, above all,
wage demands.
realism when it comes to
Wages have kept ahead of increases in
consumer prices; but we must be alert to the dangers of a
wage and price spiral.
employers nor workers.
This would benefit nobody neither
We are an open economy. The world
/will
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