TNAG-2977-FCO40-1469-Economic-policy-in-Hong-Kong-1982 — Page 182

CHAPTER 1: OVERALL VIEW

Introduction

As certain statistics

covering

the whole of 1981

1.1

were not available, some of the analyses in

some of the analyses in the 1981 Economic Background were based on incomplete information. This report

for the first quarter of 1982 updates those analyses and assesses subsequent developments using such statistics as are presently available.

Domestic demand and exports

1.2

The growth rate of retained imports of raw materials

and semi-manufactures continued to be negative in real terms

for the second consecutive quarter (paragraph 2.7). Not unexpectedly in the circumstances, the impressive increase in

the growth rate of domestic exports in real terms in the second half of 1981 was followed by no growth in the first

quarter of 1982 (paragraphs 2.1 and 2.2). With the

difficulties the economies of

of Hong Kong's main markets are experiencing, it was surprising that exports did not decline. The export sector appears well poised to take advantage of any recovery in demand from Hong Kong's main

The markets.

pressure of domestic prices, including rent, on manufacturing costs has eased (paragraph 6.5); and the prices of Hong Kong's

manufactured products have remained stable in recent months

(paragraph 6.4).

1.3

The growth rate of domestic demand appears to have continued to slow down in the first quarter, as evidenced by

the continued deceleration in the growth rate of retained

imports of

(paragraph 2.7). But it still probably provided the impetus to economic growth during the first quarter.

goods consumer

1

/Demand