TNAG-2792-FCO40-4031-Relations-between-Hong-Kong-and-China-1993 — Page 70

GF 323

CONFIDENTIAL #3

機密

14

the growth rates

of

industrial

output, consumption and

investment, though still high, seem to be tapering off.

But the inflation rate has been rising further, and the

problem of

inter-company debts has re-emerged. In overall

terms, the adjustment so far has been only gradual. More

time is needed

observe the fuller effects of the

to

"16-point plan".

(£) Developments in Guangdong

16.

Guangdong remained one of the

performance.

fastest growing

provinces in China. In the first half of 1993, Guangdong's gross domestic product grew by 21% in real terms. Other key economic indicators also showed а very impressive

Gross industrial output (excluding output from village-run enterprises) rose by 36.2% in real terms.

The value of retail sales was up by 34%. These growth rates were much higher than the corresponding national

averages of 13.9%, 25.1% and 21.6%. However, Guangdong's

inflation rate, at 16.0%, was also well above that of 10.5%

for China as a whole.

17.

In the first half of 1993, Guangdong's exports

grew by 16% in US dollar terms to US$9.3 billion, which constituted 25% of the country's total. During the period,

there were 9 976 foreign investment contracts signed in the

Province.

The pledged and realised values of foreign direct investment (17) totalled US$17.7 billion and

US$3.8 billion. Their respective growth rates were 89.6%,

169.0% and 102.4%.

(17) In the latest releases, the figures on investment in Guangdong include foreign loans, which are not separable from direct investment until the breakdown figures are available subsequently. Nevertheless, the pledged and realised values of direct investment by foreign-funded enterprises, accounted for over 80% and over 70% of the corresponding values of total foreign investment in Guangdong in recent years.

CONFIDENTIAL

機密