THE 2002-03 BUDGET - SUPPLEMENT

QUANTITIES OF DUTY-FREE TOBACCO AND ALCOHOLIC LIQUOR THAT LOCAL RESIDENTS MAY BRING IN ON RETURN FROM ABROAD
	Present duty-free quantity	Proposed duty-free quantity
Tobacco	100 cigarettes, or 25 cigars or 125 grammes of other manufactured tobacco	60 cigarettes, or 15 cigars or 75 grammes of other manufactured tobacco

Alcoholic liquor	1 litre of still wine	750 millilitres of still wine
Alcoholic liquor

EFFECT OF THE GENERAL REVALUATION ON RATES ON MAIN PROPERTY CLASSES
	*2002-03*
*Property Type*	Average Reduction in Rateable Value⁽⁶⁾	New Average Rates Payable^{(7) (Before Concession)}	*Savings*
	%	*$per month*	*$per month*
Small Domestic Premises⁽¹⁾(Private)	-7	256	-20
Medium Domestic Premises⁽¹⁾(Private)	-6	597	-37
Large Domestic Premises⁽¹⁾(Private)	-4	1,461	-62
Public Domestic Premises⁽²⁾	-8	144	-12
All Domestic Premises⁽³⁾	-7	269	-19
Shops and Commercial Premises	-5	1,476	-82
Offices	-7	1,219	-85
Industrial Premises⁽⁴⁾	-9	642	-64
All Non-domestic Premises⁽⁵⁾	-5	1,470	-79
All Properties	-6	438	-27

(1)	Domestic units are classified by relation to saleable areas as below:
	Small domestic	up to 69.9m²	(up to 752 sq. ft.)
	Medium domestic	70m²to 99.9m²	(753 sq. ft. - 1,075 sq. ft.)
	Large domestic	100m² and over	(1,076 sq. ft. and above)
(2)	Including Housing Authority and Housing Society rental units
(3)	Including car parking spaces
(4)	Including factories and storage premises
(5)	Including miscellaneous premises such as hotels, cinemas, petrol filling stations, schools, car parking spaces
(6)	The rateable values for 2002-03 reflect the changes in open market rental values from 1 October 2000 to 1 October 2001
(7)	The effects of rates concession in 2002 have not been taken into account

EFFECT OF THE GENERAL REVALUATION ON GOVERNMENT RENT ON MAIN PROPERTY CLASSES
	*2002-03*
*Property Type*	Average Reduction in Rateable Value⁽⁶⁾	New Average Rent Payable	*Savings*
	%	*$per month*	*$per month*
Small Domestic Premises⁽¹⁾(Private)	-8	143	-12
Medium Domestic Premises⁽¹⁾(Private)	-6	317	-20
Large Domestic Premises⁽¹⁾(Private)	-5	658	-35
Public Domestic Premises⁽²⁾	-8	87	-8
All Domestic Premises⁽³⁾	-7	153	-12
Shops and Commercial Premises	-5	829	-43
Offices	-4	1,255	-50
Industrial Premises⁽⁴⁾	-9	381	-37
All Non-domestic Premises⁽⁵⁾	-5	798	-39
All Properties	-6	243	-16

(1)	Domestic units are classified by relation to saleable areas as below:
	Small domestic	up to 69.9m²	(up to 752 sq. ft.)
	Medium domestic	70m²to 99.9m²	(753 sq. ft. - 1,075 sq. ft.)
	Large domestic	100m² and over	(1,076 sq. ft. and above)
(2)	Including Housing Authority and Housing Society rental units which are subject to Government rent
(3)	Including car parking spaces
(4)	Including factories and storage premises
(5)	Including miscellaneous premises such as hotels, cinemas, petrol filling stations, schools, car parking spaces
(6)	The rateable values for 2002-03 reflect the changes in open market rental values from 1 October 2000 to 1 October 2001

ECONOMIC PERFORMANCE IN 2001

Estimated rates of change in the Gross Domestic Product and its expenditure components and in the main price indicators in 2001 :

(%)

(i)

Growth rates in real terms of :

Private consumption expenditure

2.0

Government consumption expenditure

5.1

Gross domestic fixed capital formation

2.1

of which :

building and construction

-2.5

real estate developers' margin

-1.9

machinery and equipment

5.2

Total exports of goods

-3.0

domestic exports

-11.0

re-exports

-2.0

Imports of goods

-2.4

Exports of services

3.5

Imports of services

0.1

Gross Domestic Product (GDP)

0.1

Per capita GDP　

-0.7

Per capita GDP at current market prices

HK$187,700

(US$24,100)

(ii)

Rates of change in :

Composite Consumer Price Index

-1.6

GDP Deflator

-0.5

Government Consumption Expenditure Deflator

2.1

2.	Annual growth rates in real terms of domestic exports and re-exports in the last three years:
		*Domestic exports* (%)	*Re-exports* (%)
	1999	-7	5

	2000	8	18

	2001	-11	-2

	Share in the value of total exports of goods in 2001	10	90

3.	Annual growth rates in real terms of retained imports in the last three years:
		*Retained imports*
		Total (%)	Foodstuffs and consumer goods (%)	Raw materials and semi-manufactures (%)	Capital goods (%)
	1999	-12	-12	-11	-25

	2000	17	12	17	38

	2001	-3	8	-16	5

5.	Hong Kong's visible and invisible trade balance in 2001 :
		(HK$Billion)
	Total exports of goods	1,481.0

	Imports of goods*	1,570.8

	Visible trade balance		-89.8

	Exports of services^#	335.8

	Imports of services^#	178.9

	Invisible trade balance^#		156.8

	Combined visible and invisible trade balance^#		67.1

	* Including an estimate of imports of gold for industrial use.

	# Preliminary figures.

6.	Annual averages of the unemployment and underemployment rates in the last three years:
		*Unemployment rate* (%)	*Underemployment rate* (%)
	1999	6.2	2.9

	2000	4.9	2.8

	2001	5.1	2.5

7.	Annual rates of change in the Consumer Price Indices in the last three years:
		Composite CPI (%)	*CPI(A)* (%)	*CPI(B)* (%)	*CPI(C)* (%)
	1999	-4.0	-3.3	-4.7	-3.7

	2000	-3.8	-3.0	-3.9	-4.5

	2001	-1.6	-1.7	-1.6	-1.5

4.	Annual growth rates in real terms of exports and imports of services in the last three years:
		*Exports of services* (%)	*Imports of services* (%)
	1999	6	-3

	2000	14	2

	2001	3	0*

	* Change of less than 0.5%.