888-387
dti
and clocks, electronics and toys.
HK is a major international
financial centre and a major centre for re-exports (which now exceed domestic exports).
While the
20 Hong Kong's economy has been buoyant in recent years, although, continuing the trend in 1988, it slowed further in 1989. economy was still operating close to capacity, there was a
The impact slackening both in external trade and domestic demand. of the June events in China reinforced the downturn. Though certain sectors, such as property and tourism, suffered more than others immediately after the June events, the economy as a whole weathered the short-term impact well and again demonstrated its resilience.
In 1989 the labour market remainted tight, and inflation was
touching 10%.
GDP growth in 1989 was only 2.5% in real terms, a marked deceleration from growth rates of 14% in 1987 and 7% in 1988.
In 1989 Hong Kong's domestic exports increased by 3% against
A visible trade 1988, re-exports by 26%, and imports by 13%. surplus of HK $7.7 bn was recorded in 1989.
Whilst the performance of domestic exports was weak, re-exports continued to increase rapidly, although growth was not as strong as in 1988. Overall economic growth in 1989 was therefore supported to a considerable extend by the growth in re-exports.
21 Hong Kong has been the source of two-thirds of contractual value of foreign investment in China and of a large proportion of foreign loans. The complementary relationship between HK and China has benefited both economies. Many HK investors are now reappraising their future investment plans in China, although rising production costs in Hong Kong could lead to a resurgence of joint ventures in China provided the present situation there does not take a turn for the worse. Having established extensive processing activities in China, HK manufacturers would suffer
No comments yet.
Private notes are available after approval.