TNAG-2212-FCO40-3172-Hong-Kong-annual-report-for-1990-1991 — Page 51

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enjoyed in Hong Kong in a manner which is inconsistent with

the ICCPR as applied to Hong Kong.

VIII GENERAL ECONOMIC SITUATION

30. The rate of economic growth in Hong Kong remained

modest in 1990, continuing the cyclical slow-down started in

1989. GDP growth in real terms was 2.4 per cent, following

increases of 7.9 per cent in 1988 and 2.3 per cent in 1989.

The slow-down in economic activity was attributable partly

to more moderate demand from overseas for Hong Kong's

products, and partly to the supply constraints caused by

several years of very rapid growth from 1986 to 1988. While

there was some improvement in economic performance in the

latter part of 1990, the Gulf crisis gave rise to some uncertainty in the short term.

31.

Domestic exports remained weak with signs of recovery in the fourth quarter. Re-exports continued to be robust

and provided the main impetus for the growth in total

exports. Domestic demand, including both consumption and

investment demand improved in the latter part of 1990,

following a sluggish performance earlier in the year.

32.

Notwithstanding the moderate activity, the economy was still operating close to its capacity, and the labour market

remained generally tight in 1990. The unemployment and underemployment rates stayed low even towards the end of the year, while earnings of the local workforce continued to

rise rapidly even after discounting for inflation. The

local inflation rate remained high in 1990. Although there

was a slight easing in the earlier months, the short-lived

Footnote Detailed facts and figures on the economy as a whole and on

individual sectors are given in the Annual Report "Hong Kong

1991" which is available in the library of the House.

ALAAEV/11

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