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Economic outlook for Hong Kong remains good: FS
The Financial Secretary, Sir Hamish Macleod, tonight (Thursday) gave a reassurance that Hong Kong's prospects continue to be good and the overall economy would have another year of steady and respectable growth.
Speaking at the General Committee Dinner of the Chinese Manufacturers' Association of Hong Kong, Sir Hamish said it was likely Hong Kong's economic growth would be about 5.5 per cent this year.
He said a number of slightly surprising statistics recently might have caused some confusion about where the economy headed. But there are some positive signs
too.
"In some major sectors, business is in fact very strong. In the first five months of this year, our domestic exports grew by about eight per cent in real terms, in stark contrast to the decline of two per cent last year.
"Re-exports accelerated from 14 per cent last year to about 19 per cent in real terms in the first five months of this year," he said.
On investment, Sir Hamish said there was no shortage of interest whether in acquisition of machinery and equipment, in undertaking major infrastructural projects, or in new development and redevelopment of property.
"The overall rate of capital formation in the economy, at 10 per cent last year, well exceeded the rate of GDP growth, indicating that investment initiative has remained strong, and we expect a similarly impressive rate of capital formation this year," he said.
To maintain being competitive, he reminded investors to continue to be alert to the competition and flexible and swift response.
Sir Hamish said companies had been responding to the high price of manpower and space by saving costs and raising productivity wherever possible.
"Manufacturers relocate much of their resource-consuming factory-floor operations to China, whilst retaining the crucial management and development functions and higher value manufacturing in Hong Kong.