Bargains at deflation's outset are silver lining to cloud: falling prices please consumers, but trouble economists; signs of trauma are emerging
Article Abstract:
Hong Kong economists are worried over the drop in prices of many consumer products, since this an ominous warning that deflation is imminent in the island. This is in line with other economic indicators such as the projected drop in employment, as well as freezing any wage increase. Food prices in restaurants were shown to drop by as much as 25%, while other consumer spendings such as housing rentals, are expected to drop by 20% to 25%. The Hong Kong retail industry is hardest hit, with a number of specialty boutiques offering discounts as much as 40%. Hong Kong firms have frozen salaries or have asked employees to take as much as 10% cuts in salaries.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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Hong Kong is recovering
Article Abstract:
Economic indicators for the third quarter of 1996 showed Hong Kong's economy recovering due to an increase in private consumption. Gross Domestic Product growth in the 3rd qtr. reached 5.1%, compared to the 2nd qtr.'s 4.6%, which closely approximates government projections of a 4.7% growth for the whole of 1996. Private consumption increased by 4.5%, total exports increased by 4.9% and imports increased by 3.4%. What worries Hong Kong economists is the decrease of the GDP implicit deflator to 4.6% which suggests rising import prices against export prices.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1997
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Employers' worries in Hong Kong are escalating; freeze in hiring and pay more evident as companies wrestle with recession, survey shows
Article Abstract:
A survey conducted by Wyatt Worldwide on 165 Hong Kong employers indicated that about two-thirds of the region's firms have stopped hiring and that over 40% are laying off their employees or have stopped pay increases. Government statistics indicate that Hong Kong's economy contracted by 5% in 1998 and will continue to contract by another 2% in 1999. Unemployment reached 5.8% in the three months previous to Dec 31. The weighted average of salary increases for 1999 was estimated at 1.5% compared to 6% in 1998.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1999
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