TNAG-2708-FCO40-3914-House-of-Commons-Select-Committee-on-Foreign-Affairs-and-Par-1993 — Page 26

4. ECONOMY

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In his budget of 3 March, Hong Kong's Financial Secretary

confirmed that Hong Kong's economy continues to perform

strongly. GDP grew by 5% in 1992, and is forecast to grow

by about the same in 1993. Trade with China continues to

boom. Investment will be sustained by Government infrastructure projects.

The Hang Seng Index has been reaching an all time high.

The Hong Kong Government is maintaining its efforts to

combat an inflation rate of around 10%.

Budget should not move into deficit in last years of British

rule.

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Hong Kong Governments finances very healthy. Can easily

afford the planned expenditure.

10

supp.PQ.rod