Hong Kong General Chamber of Commerce (HKGCC) Tuesday raised its forecast for Hong Kong's real GDP growth this year to 5 percent.

At a press briefing, HKGCC Chief Economist David O' Rear said that in view of the rapidly improving domestic economy, and continued strength in foreign trade and tourism flows, the chamber has raised its forecast for Hong Kong real GDP growth this year.

The real GDP growth this year is expected to rise to 5 percent,from its December 3.8 percent forecast, according to O' Rear

"On the domestic side, a large part of the improving arises from strong retail sales related to tourism, and to the strengthening property market," he said. "In addition, we have seen stability in the size of the labor force, which will improve headline unemployment figures."

"On the external side, we are concerned that the US economy appears to have peaked in the third quarter of last year, and thatthe authorities in Beijing are working to cool off growth in the rest of mainland," he said.

Source: Xinhua