TNAG-2466-FCO40-3590-Economic-situation-in-Hong-Kong-1992 — Page 104

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Hong Kong Financial Round-Up January-February 1992

GDP Up 3.6%

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Hong Kong's Gross Domestic Product (GDP) grew by 3.6 per cent in real terms in the third quarter last year compared with the same period in 1990. The preliminary estimate for the July to September period brings the figure for the first nine months of 1991 to 3.8 per cent virtually on line with the government's revised forecast of a four per cent GDP growth for the year. In the domestic component of the GDP, gross domestic fixed capital formation grew by a healthy 11.5 per cent compared with the 7.4 per cent and 10.9 per cent revised estimates for the first two quarters of the year.

Retail Sales Up 19%

Retail sales continued to grow strongly in November, bolstered by improving confidence in Hong Kong's economy and increased demand for jewellery and motor vehicles. Figures released by the Census and Statistics Department show the value of total retail sales was estimated at HK$11.7 billion (US$1.5 billion), up 19.3 per cent over November 1990. After adjusting for price increases over the period, total retail sales rose by 12.7 per cent in volume terms. The marked increase in sales was due mainly to a high level of consumer spending on clothing, jewellery, watches and motor vehicles.

HK Dollar Deposits Up

Hong Kong dollar deposits with authorised institutions grew by more than 16 per cent in 1991, broadly in line with the growth rate of the GDP in money terms. At the end of December, Hong Kong dollar deposits totalled HK$604 billion (US$77,4 billion), a rise of 16.2 per cent over the previous December, US dollar deposits at US$311.4 billion were up to 5.6 per cent over a year earlier. Hong Kong dollar loans at the end of the year amounted to HK$723.8 billion (US$93 billion), up 19 per cent.

New Company Registrations Up

The number of new companies registering in Hong Kong increased by 68 per cent during the past year to just under 44,000. The new registrations pushed the total number of companies registered under the Companies Ordinance to 304,500 up 15 per cent on the 1990 figure. Of these, there were some 2,800 overseas companies which had an established place of business in Hong Kong, a rise of seven per cent.