The latest report of Bank of China (Hong Kong) Limited (BOCHK) indicates Hong Kong economy increased by 6.5 percent in the first half of the year, higher than market expectations. Therefore, BOCHK has revised its economic growth forecast for 2005, raising it from 5 percent to 6 percent.

BOCHK says the adjustment means Hong Kong's economic growth will reach 5.5 percent in the second half of the year; its unemployment rate will hopefully decrease to 5.3 percent by yearend; and the whole-year inflation rate will be 1.2 percent.

According to BOCHK, oil price and rise of interests are the biggest factors that may affect prospect of the Hong Kong economy. Statistics of the HK SAR government show the government still maintains forecast of economic growth at 4.5 percent to 5.5 percent.

By People's Daily Online