TNAG-2750-FCO40-3965-Most-favoured-nation-status-for-China-Hong-Kong-interests-1993 — Page 168

Assessment

year

2. A comparison with

the results of the previous

assessments shows that the likely impact on the Hong Kong economy has become increasingly significant over the past

years.

Loss in HK's

re-exports

Loss in value added

from China

Loss in

to US

(HK$ Bn)

jobs (Number)

or GDP contribution (HK$ Bn)

Loss in growth of GDP (percentage points)

1990

23

-

32

over 20 000

5-7

1.0-1.4

1991

27

-

36

32 000-43 000

7-10

1.3-1.8

1992

36

49

44 000-60 000

12-16

1.8-2.5

1993

47

66

49 000-69 000

16-23

2.2-3.1

This is mainly due to the very rapid growth in Hong Kong's re-exports of China origin to the United States, averaging

at about 26% per annum in real terms since 1989. It was

much faster than the growth rate of Hong Kong's GDP over the same period, averaging at around 4% per annum in real

terms.

Hong Kong Government Office

15 March 1993