HK GDP in 2002 Forecast One Percent: Leung

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Last updated at: (Beijing Time) Wednesday, March 06, 2002

HK GDP in 2002 Forecast One Percent: Leung

Hong Kong Financial Secretary Antony Leung forecast a GDP growth of one percent in real terms for 2002 as he delivered his first budget report in the Legislative Council Wednesday.

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Hong Kong Financial Secretary Antony Leung forecast a GDP growth of one percent in real terms for 2002 as he delivered his first budget report in the Legislative Council Wednesday.

"I am forecasting a GDP growth of one percent in real terms for 2002, and real trend growth of three percent over the medium term, " Leung said.

He said, "As the excess capacity within the global economy has yet to be digested and local deflationary pressure will remain, I forecast a fall of 1.5 percent in the GDP deflator for 2002 and 0. 4 percent trend growth over the medium term."

Leung believed that the EU and U.S. economies will recover in the foreseeable future and that the Chinese mainland will maintain its high economic growth.

"In the light of the more favorable external factors and our sustained efforts to move up the value chain, the outlook for Hong Kong is bright in the medium and long term," he added.

While the medium- and long-term outlook is promising, it will take time for Hong Kong's economy to recover. Economic restructuring will continue for some time, Leung said.

"In the light of these factors, coupled with the pressure of deflation, I expect that, in the short term, the unemployment rate will increase further," he concluded.

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HK GDP Expected to Grow 1.4 Percent in 2002