HK sees economy growing 5 pc in 2010
Saturday, 15 May 2010
HONG KONG, May 14 (AFP): Hong Kong's economy will likely grow more than the government's previous forecast of 4.0- 5.0 percent this year, an official said today, helped by a strong rebound in the regional economy.
The positive outlook was announced after data was released showing 8.2 percent year on year growth in the first quarter of 2010, compared with 2.5 percent in the previous three months.
"With the Hong Kong economy bouncing back for four quarters in a row, by the first quarter of 2010, GDP has largely returned to the peak in early 2008, recouping all the lost ground in the 2009 Great Recession," a government spokesman said in a statement.
"If no major external shocks occur, real GDP growth for 2010 as a whole would very likely exceed the forecast of 4.0-5.0 percent" as announced by financial secretary John Tsang in his annual budget in February.
But the spokesman said the government would not adjust its 2010 forecast because of uncertainties abroad.
"The Greek sovereign-debt problem and the need for some European economies to implement austerity measures may pose a drag to the recovery in Europe and increase financial market volatility," he said.
The problems in Europe led to uncertainties in Hong Kong's export outlook, especially in the latter part of the year as exceptional fiscal boosts by the European governments start to wane, he added.
The improvement in the city's economy for the first three months of this year was broadly based, the spokesman said.
Merchandise exports surged 21.6 percent year-on-year over the period, thanks to vibrant growth in mainland China, strong intra-regional trade and a gradual return of demand from the United States and Europe.
Private consumption grew 6.5 percent year-on-year amid improving labour market conditions.
Hong Kong slipped into recession in the third quarter of 2008 as the global financial crisis took its toll on the Asian financial hub.
The government recorded four consecutive quarters of GDP falls between the second quarter of 2008 and the first quarter of 2009.
The positive outlook was announced after data was released showing 8.2 percent year on year growth in the first quarter of 2010, compared with 2.5 percent in the previous three months.
"With the Hong Kong economy bouncing back for four quarters in a row, by the first quarter of 2010, GDP has largely returned to the peak in early 2008, recouping all the lost ground in the 2009 Great Recession," a government spokesman said in a statement.
"If no major external shocks occur, real GDP growth for 2010 as a whole would very likely exceed the forecast of 4.0-5.0 percent" as announced by financial secretary John Tsang in his annual budget in February.
But the spokesman said the government would not adjust its 2010 forecast because of uncertainties abroad.
"The Greek sovereign-debt problem and the need for some European economies to implement austerity measures may pose a drag to the recovery in Europe and increase financial market volatility," he said.
The problems in Europe led to uncertainties in Hong Kong's export outlook, especially in the latter part of the year as exceptional fiscal boosts by the European governments start to wane, he added.
The improvement in the city's economy for the first three months of this year was broadly based, the spokesman said.
Merchandise exports surged 21.6 percent year-on-year over the period, thanks to vibrant growth in mainland China, strong intra-regional trade and a gradual return of demand from the United States and Europe.
Private consumption grew 6.5 percent year-on-year amid improving labour market conditions.
Hong Kong slipped into recession in the third quarter of 2008 as the global financial crisis took its toll on the Asian financial hub.
The government recorded four consecutive quarters of GDP falls between the second quarter of 2008 and the first quarter of 2009.