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HK economic recovery is full swing
(Xinhua)
Updated: 2004-10-12 14:41

This economic forecast, commissioned by the Better Hong Kong Foundation, is managed by the Center for Economic Development of the Hong Kong University of Science and Technology.

George Yuen, chief executive of Better Hong Kong Foundation, remarked: "Figures in recent months painted out a brighter outlook for 2004 that the whole community deserves to have after a hardship-filled 2003."

"Certainly, our economic environment has been improved remarkably, shown by positive business sentiment, promising tourist statistics, buoyant retail and service market as well as stable property market. But what will happen in the wake of the uncertainties posed by surging global oil prices and booming inflating prospect keeps us in vigil." said Yuen.

Professor Francis Lui, director of the Center for Economic Development, attributed the strong momentum of recovery to mainland's policy of preferential support in terms of the CEPA while hugely boosts consumer and investor confidence, as well as the Individual Travel Scheme that brings along with the record high of hotel occupancy and tourist statistics and robust growth in Hong Kong's major trading partners, the United States and mainland.

However, Lui warned of the vulnerabilities of Hong Kong economy in the face of external uncertainties "the rising interest rate and oil price spike have yet been translated into downward pressure on our GDP this year, but they would raise greater concern for next year, with a GDP forecast is 4.5 percent." Lui said.

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