TNAG-2791-FCO40-4030-Relations-between-Hong-Kong-and-China.-With-maps-1993 — Page 15

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(5) China's

(6)

(7)

(8)

(9)

the

inflation rate, measured in terms of

General Retail Price Index, showed an acceleration

from 4.6% in the third quarter to 6.4% in the fourth

quarter of 1992. But the inflation rate for the whole

year, averaged at 5.4%, was still lower than the official projection of 6%. Inflation was much higher

in the major cities than in the rural areas

(paragraph 9).

In 1992, China's external trade saw a significant

expansion and the country ascended to become the eleventh largest trading entity in the world. During year, the value of imports rose more rapidly than that of exports, resulting in a substantial narrowing

of the visible trade surplus to US$4.4 billion

(paragraph 10).

the

There was a continued strong inflow of foreign capital

into the country. The total value of pledged foreign

direct investment in 1992, estimated at US$47 billion,

increased by 292%/% over 1991, while that of realised

foreign direct investment, estimated at US$11 billion,

increased by 156%. Meanwhile, the total value of realised foreign capital amounted to US$19 billion,

63% higher than in 1991 (paragraph 11).

During the fourth quarter, the official exchange rate of the Renminbi was revised moderately downward. The

exchange rates in the major foreign exchange adjustment centres, which were already significantly

lower than the official rate, showed much sharper declines. The strong demand for imports and hence for

foreign exchange was а major contributory factor (paragraphs 14 and 15).

Guangdong remained one of the most important growth

centres in China. Its gross domestic product grew by

19.5% in 1992, and its gross industrial output by 33%.

These were considerably higher than the corresponding

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