6.
In real terms, re-exports registered a substantial growth of 29% in the first five months of 1992 over a year earlier, while domestic exports decreased by 1%. Meanwhile, imports recorded a marked increase of 21%.
7.
In the first half of 1992, domestic exports to China surged further, while those to the United States continued to revive. On the other hand, domestic exports to Japan fell slightly and those to Germany and the United Kingdom showed sharp declines.
Labour market
8.
The seasonally adjusted unemployment rate in the second quarter, at 2.3% (provisional), was 0.1 of a percentage point lower than in the first quarter. The underemployment rate, at 2.2% (provisional) in the second quarter, was the same as in the first quarter.
Prices
9.
From 8.8% in May, the year-on-year rate of increase in the CPI(A) edged up slightly to 9.3% in June, partly because of some seasonal increase in the prices of fresh fruits. But the June inflation rate still represented a significant deceleration from the peak figure of 13.9% recorded in April 1991. Notwithstanding the slight pick-up in June, the underlying trend was still moderating; the seasonally adjusted CPI(A) increased by only 1.9% during the period March to June, substantially lower than the 3.4% during the preceding three months.
Financial sector
10.
Local money market interest rates softened further during July. At 3 1/4%, the 3-month interbank rate at end-July was half of a percentage point lower than a month earlier. Meanwhile, the 3-month Eurodollar deposit rate declined by 15/32 of a percentage point o 3 3/8 at end-July. The differential between the two rates thus widened to 1/8 of a percentage point in favour of the US dollar, from 3/32 of a percentage point at end-June.
11.
The Hong Kong Association of Banks lowered the various deposit rates by half of a percentage point on 7 July. The two note-issuing banks also cut their best lending rates by the same magnitude. At the end of the month, the savings, 3-month and 12-month deposit rates were 1 1/2%, 2 3/4% and 3 3/4% respectively. The best lending rate stood at 6 1/2%.
12.
The market exchange rate of the Hong Kong dollar moved within a narrow range from HK$7.728 per US$ to HK$7.742 per US$ during July. It ended the month at HK$7.735 per US$. Reflecting the continued depreciation of the US dollar, the effective exchange rate index declined further, from 110.2 at end-June to 109.8 at end-July.
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