TNAG-2048-FCO40-2918-Visits-by-members-of-the-Office-of-the-Members-of-the-Execut-1990 — Page 53

The Economy

1989 per capita GDP of US$11,000. 1990 forecast: US$12,100.

High rate of real GDP % growth:

1968 - 1988

1979-1989

+8.3 (av.)

+7.4(av.)

1986

+11.9

1987 +13.8

1988

1989

1990 (forecast)

+7.3

+2.5

+3.0

Plant and machinery private investment: +1% real growth in 1989.

Retained imports (real growth)

1987

1988

1989

Capital goods

+27%

+17%

+ 2%

Industrial machinery

+18%

+18%

-8%

Exports (real growth)

1986

1987

1988

1989

1990 (forecast)

Domestic exports

+16%

+23%

+ 9%

+0.1%

+2.5%

Re-exports

+14%

+46%

+46%

+19%

+8.0%

Tourism expenditure in 1989 up 11% to $37B: one of the world's top destinations.

New convention centre, a world class facility, opened. Booked solid until 1992. An extension is being planned. Unemployment only 1.3% and good labour/management relations.

Foreign investment in manufacturing continuing to increase.

134 foreign banks licensed; 77 within world's top 100.

292 public companies, with market capitalization of HK$628B (US$80B) at Mar 1st, 1990.

One of 4 largest gold bullion markets.

World Bank launched two HK$ bond issues in May 1989 and January 1990. Creditworthiness of the Mass Transit Railway rated A3 by Moody's.

With average daily turnover of US$49B, ranks 6th as foreign exchange market.