CONFIDENTIAL
XCCI(93)2
1992 Article IV Consultations
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The 1992 Article IV consultations took place from 4 to 14 November 1992. The IMF staff mission comprised Mr Bijan Aghevli, (Deputy Director of the Central Asia Department) and four other staff members. Mr David Peretz, UK Executive Director in the IMF and the World Bank, attended the consultations as observer.
Programme for the mission
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The mission met the Financial Secretary and officers of the Monetary Affairs Branch, Office of the Exchange Fund, Finance Branch, Economic Services Branch, Trade and Industry Branch and Office of the Commissioner of Banking to discuss Hong Kong's monetary, fiscal, economic and trade policies. The mission also had meetings with the Economic Research Division of the Hongkong and Shanghai Banking Corporation and of the Hong Kong and Macao Office of the Bank of China, the Nomura Research Institute, Citibank, Baring Securities, the Economics Department of the University of Hong Kong and GT Management (Asia) Ltd.
OBSERVATIONS BY THE IMF
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At the end of the consultations, the IMF staff mission handed over a document entitled "Concluding Remarks" (Annex). The views of the mission are summarized below.
Economic Growth and Prospects
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The economy has performed strongly, with further gain in growth momentum underpinned by rapid increases in investment and private consumption, increases in exports and re-exports and strong confidence. The mission expects that the GDP growth should reach, or even exceed, our official forecast of 5 per cent for 1992. Growth prospects for 1993 remain favourable.
Inflation
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While there has been some relief, inflationary pressures persist with the recent tightening of the labour market and with the economy operating at full capacity. The mission is concerned that strong private
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