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Double-digit Economic Growth Expected in HK This Year
Standard Chartered Bank has revised the real GDP growth forecast of Hong Kong in 2000 to 10 percent, from its previous prediction of eight percent made in March this year. Economic figures released in recent months showed that trade continues to perform very well in Hong Kong. Retained imports are growing strongly in recent months, signifying that domestic demand is set to remain firm in the coming months, according a press release of Standard Chartered Thursday.
The economic upswing in China's mainland is having an increasingly positive impact on Hong Kong, particularly through trade, stock market activities and tourism, the press released said.
"Worries of rapid increases in interest rates and a 'hard landing' in the United States have subsided," said K.C. Kwok, regional chief economist of Standard Chartered.
The U.S. Federal Reserve has decided to keep interest rates on hold Wednesday. The market consensus is expecting an increase of a further 25 basis points in interest rates in the second half of this year, rather than 75 basis points or more as predicted a month ago.
"The 10 percent growth forecast for the year 2000 as a whole is a relatively conservative one," said Kwok. "The market is always worried about the downside risk. But increasingly, the surprise is likely to come on the upside."
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