TNAG-2467-FCO40-3591-Economic-situation-in-Hong-Kong-1992 — Page 103

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HONG KONG FINANCIAL ROUND-UP August-September 1992

Government economic report

The Hong Kong government has maintained its forecast for inflation and overall economic growth for the year. Gross domestic product (GDP) grew 4.7 per cent in the first quarter of the year driven by robust re-exports and improved domestic exports, according to the half- yearly economic report. It was estimated growth in the second quarter was around 4.5 to 5 per cent. The government's decision to stick with its forecast growth rate of five per cent indicates the economy is expected to grow slightly faster in the second half of the year.

Container traffic up

There has been a significant rise in total container throughput in the port of Hong Kong in the first six months of the year. Between January and June, the total number of containers handled jumped by 26.4 per cent to 3.57 million. Activity at the Kwai Chung terminals increased by almost 10 per cent to 2.28 million TEUS (twenty-foot equivalent unit). However, the biggest increases were in mid-stream operations which were up by 64 per cent to 1.16 million TEUs and river trade up by 245 per cent to 128,600 boxes.

Half-year merchandise trade by air up 14%

The value of total merchandise trade by air in the first half of this year amounted to HK$149.9 billion (US$19,2 billion), an increase of 14 per cent over the same period last year, according to statistics released by the Census and Statistics Department. In value terms, airborne trade accounted for 17 per cent of total merchandise trade.

Measures to curb property speculation take effect

Measures introduced to curb property speculation in the past year are gradually taking effect, according to a half-yearly report on the property market. Land Office statistics indicated a decrease of about 30.7 per cent in the number of sales and purchase agreements lodged in the New Territories as compared with the previous six month period ending December 1991. The corresponding average decrease in the urban areas was 12.5 per cent.

Lantau site attractive

A piece of land on Lantau Island has been sold at auction to Sino Land for almost triple its opening price, highlighting the potential for land development on the island with the new Chek Lap Kok airport under construction. The 741 square metre site, in the north eastern section of Lantau zoned for residential use, sold for HK$54 million (US$7 million).

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