TNAG-2791-FCO40-4030-Relations-between-Hong-Kong-and-China.-With-maps-1993 — Page 30

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CONFIDENTIAL

13

-

Retail price index

Fixed asset investment Government fiscal deficit

Rate of increase

(*)

6

9

Value (Rmb Bn)

860

940

10

29

These forecasts suggest that the

performance of China's

economy should remain strong in 1993, with the real GNP, gross industrial output, residents' income and retail sales all showing double-digit growth. As the growth rate of

bank loans is officially targetted at around 20% for 1993, which is higher than the forecast growth rate of nominal

GNP, China's overall monetary and credit stance would

In this connection, inflation is

remain accommodative.

likely to accelerate further in 1993.

17.

(£) Developments in Guangdong

Guangdong was amongst the fastest growing regions in China. In 1992, the province's gross domestic product

(GDP) was estimated at Rmb 221.8 billion (at current prices), with -an impressive growth rate of 19.5% in real terms. Its gross industrial output (excluding output from village-run enterprises) grew even more rapidly, by 33% to

Rmb 335.4 billion (at constant (1990) prices). These growth rates compared favourably with the nationwide

figures of 12.8% and 21.7% respectively. On the other

hand,

Price

Guangdong's inflation rate, as measured by the Retail Index, averaged at 5.8% in 1992, which was only

slightly higher than that of 5.4% for the country as a

This demonstrated the

whole.

province

remarkable ability of the

in adapting to the pressure of economic growth on

its resources.

CONFIDENTIAL #B

機密

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