--- SEARCH ---
WEATHER
CHINA
INTERNATIONAL
BUSINESS
CULTURE
GOVERNMENT
SCI-TECH
ENVIRONMENT
SPORTS
LIFE
PEOPLE
TRAVEL
WEEKLY REVIEW
Film in China
War on Poverty
Learning Chinese
Learn to Cook Chinese Dishes
Exchange Rates
Hotel Service
China Calendar
Trade & Foreign Investment

Hot Links
China Development Gateway
Chinese Embassies

HK's Economic Outlook Bright

Hong Kong's financial secretary said yesterday he was optimistic about the outlook for the economy next year but high unemployment remained a challenge.

 

"I'm prudently optimistic about the future but when it comes to unemployment I do think there are a lot of challenges," Financial Secretary Henry Tang told legislators during a regular briefing to the Legislative Council. A weak US dollar, which makes Hong Kong's exports more competitive because of the territory's currency peg to the dollar, and falling oil prices would help the economy, Tang said.

 

The territory's unemployment rate of 6.7 percent was still on the high side though, he said. Economic recovery has created 100,000 jobs in the past year, pushing employment to record levels, but it has also encouraged many spouses who had stayed at home during the economic downturn to go out and seek work again, Tang said.

 

Much of the territory's unemployment is structural as jobs have shifted across the border to the lower cost mainland. The construction sector meanwhile, is still grappling with 15 percent unemployment amid an oversupply of housing and office space.

 

He said he was confident the economy would this year meet the government's forecast for 7.5 percent growth. The government has yet to forecast growth next year but a recent Reuters poll of analysts estimated growth in gross domestic product would slow to 4.1 per cent in 2005.

 

In July, the territory finally escaped a near six-year annual deflation cycle and Tang said he expected inflation to remain intact.

 

"We believe inflation will be on the upside in coming years," Tang said, adding that it would not be serious inflation.

 

Prices of imports from Europe and other Asian countries are rising as the dollar is falling. Speculation is also swirling that the mainland may next year allow its renminbi currency to appreciate slightly from its linked rate to the US dollar.

 

However, any such move would not create much inflationary pressure in Hong Kong, the chief government economist, K.C. Kwok, told legislators.

 

(China Daily December 7, 2004)

 

HK 2004 Economy Expected to Rise 7.5%
HK's Unemployment Rate Drops to 6.9%
HK Chief Optimistic About Economy
HK World's Freest Economy for 10th Consecutive Year: Report
HK Economy to Grow 4 Percemt Next Year: Report
Hong Kong's Jobless Rate Down
Unemployment in HK Bbegins to Move down
HK Goernment Committed to Tackling Joblessness
HK's Jobless Rate at Record 8.7%, Set to Stabilize
Jobless Rate at Record High in HK
Print This Page
|
Email This Page
About Us SiteMap Feedback
Copyright © China Internet Information Center. All Rights Reserved
E-mail: webmaster@china.org.cn Tel: 86-10-68326688