Roundup: HK economy witnesses balanced growth in 2005

Hong Kong's economic grew by 7.3 percent in the first three quarters of this year and various research organizations have already raised Hong Kong's annual economic growth rate to 7 percent, 1.5 to 2.5 percentage points higher than the expectations at the beginning of this year.

The consumption, investment and export have become dynamic forces for driving Hong Kong's economic growth, experts here observed.

The private consumption grew 4.6 percent in the third quarter over last year's same period while the figure was 3.5 percent up in the first half of this year. Goods export and service export remained surging in the third quarter by 12.8 percent and 8.2 percent respectively. The volume of investment on fixed assets also grew by 2.5 percent in the first nine months this year.

The economic growth also helped increase job opportunities in Hong Kong and additional 220,000 posts have been created since 2003, with 40 percent of them in the lower-skilled category and the unemployment rate went down to 5.3 percent in October, lowest level in the past four years.

The consumer prices have also been controlled within a small range. In the first 10 months this year, the average consumer price index was 1 percent.

Despite the ongoing uncertainties of high oil prices, rising US interest rates and exchange-rate movements, Hong Kong's economic prospects remained optimistic, Hong Kong Financial Secretary Henry Tang said in late November.

The International Monetary Fund also predicted that Hong Kong's economy in 2006 is expected to grow by 4.5 percent or 5 percent.

Major Hong Kong based banks such as HSBC, Hang Seng and Bank of China (Hong Kong) believed that though Hong Kong may witness a slower economic growth in 2006, Hong Kong's economy will grow steadily.

At the same time, the positive effects of the Chinese mainland/ Hong Kong Closer Economic Partnership Arrangement (CEPA) have begun to show.

Since September 2004, Hong Kong's exports to the Chinese mainland have been increasing and CEPA is expected to promote trade and investment of Hong Kong businesses.

Tourism, one of Hong Kong's pillar industries, is also expected to witness a further growth with the opening of Hong Kong Disneyland and Asia Expo this year and the opening of Wetland Park next year.

In the first 10 months this year, the number of visitors to Hong Kong reached 19.09 million and the tourism departments hope to receive 23 million tourists this year.

The Tourism departments also expect to receive 27.14 million of tourists in Hong Kong in 2006. Hong Kong's retail and hotel sectors are also expected to benefit from the growth of tourism.

However, some uncertainties, including bird flu outbreak's affect over economic growth still remained unpredictable and Hong Kong would keep vigilant watch on the international economic situation, said experts.

Source: Xinhua