CE Says HK's Economy Recorded Considerable Growth

Tung Chee Hwa, chief executive of the Hong Kong Special Administrative Region (HKSAR), said that HKSAR's inward investment, tourism, domestic consumption and external trade have all recorded considerable growth.

Stating at the Legislative Council session on Friday, Tung said the first quarter of this year witnessed robust economic recovery with a vigorous growth of 14.3 percent over the corresponding period of last year.

"With these favorable factors, we are witnessing favorable economic growth," said Tung.

He felt optimistic that the economic growth would be sustainable.

"We are preoccupied with the possible increase in U.S. interest rates and the growing strength of the U.S. dollar. But Hong Kong will surely benefit from the continued economic growth of the global markets, especially the Mainland market."

Tung pointed out that in the first quarter of this year, HKSAR' s tourism experienced a very vigorous growth. The total number of visitors for this year is expected to reach 12 million.

He said that growth in external trade in the first quarter exceeded 20 percent. Though Hong Kong branch offices of multi- national enterprises were hit by the Asian financial turmoil, Hong Kong still have about 2,500 of them. Compared with a year or two ago, Hong Kong now have 2,000 newly-established IT companies. The tenancy of Cyberport and the first phase of Science Park is almost fully taken up. Developing Hong Kong into a center of innovation and technology is no longer a dream.

In 1999, the take-up rate of office premises reached a record high of five million square feet. Investment increased by 5.6 percent and consumption grew by 14 percent.

"On the basis of these indicators, my colleagues and I are confident that we are able to realize a growth rate of six per cent or more for this year and four per cent for the next year," said Tung.

Tung added that later this year, China would join the World Trade Organization and the Disney theme park project would be completed within the next few years. Furthermore, many infrastructural development projects are well under way.

"I am, therefore, optimistic about the mid-term outlook of our economy," he said.



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