The year 2004 has witnessed Hong Kong's economy on the right track of overall recovery after setbacks and downturn.
Although the annual statistical report of the
Hong Kong Special Administration Region (HKSAR) government has not yet been released, sound economic performances are shown in major indexes of various sectors as well as in brisk buying and selling around the New Year.
The
Hong Kong Stock Exchange set many new records this year.
The total turnover of the
Hong Kong Stock Exchange had reached 3.8 trillion
Hong Kong dollars (about 487 billion US dollars) as of December 15, 2004, up 3.9 billion
Hong Kong dollars over the record year of 1997; and the gross market value came to 6.6 trillion
Hong Kong dollars (about 846 billion US dollars) on record as of December 2, 2004.
The funds raised by the
Hong Kong Stock Exchange may total 280 billion
Hong Kong dollars this year, ranking the second only after the New York Stock Exchange in the world.
Hong Kong's real estate market is back to life.
More than 113,000 property deals were clinched in the first 11 months of this year, and the figure is expected to surpass 120,000 for the whole of 2004, the highest since 1997. The value of the deals for the whole year may reach 350 billion
Hong Kong dollars, setting a record since 1997.
Encouraged by the interior policy of "individual tourism", the number of visitors from the Chinese mainland to
Hong Kong is expected to top 21.36 million in 2004.
Hong Kong's unemployment rate dropped from 8.7 percent in 2003 to current 6.7 percent, and its deflation, which had lasted for 68 months, ended in July, 2004, with the improvement of employment, tourism, transport and retail services.
Citizens have benefited from the economic recovery in Hong Kong, which has offered a record of 3.3 million job opportunities and decreased the number of cases involving negative assets from 105,000 in June 2003 to 25,300 at present, and the amount of unsecured loans from 36 billion
Hong Kong dollars to 7 billion
Hong Kong dollars.
"It is beyond our expectation that Hong Kong's economy grows so well," said a researcher with the Bank of China (Hong Kong).
The bank has adjusted its prediction of Hong Kong's 2004 economic growth rate from five percent at the end of 2003 to six percent in the middle of 2004 and 7.8 percent at present.
According to
Hong Kong Financial Secretary Henry Tang, Hong Kong's economic growth this year may reach 7.5 percent, higher than the forecast of six percent set by the
Hong Kong Special Administrative Region government last March and May.
Economic analyzers here agreed that Hong Kong's economic recovery this year is different from previous ones, which depended heavily on exports, and it is rejuvenated by private consumption and investment alongside net exports.
Experts attributed the economic recovery and investors' confidence to Hong Kong's own advantages, supports from central government, closer ties with the Chinese mainland.
An annual business prospect survey by the
Hong Kong General Chamber of Commerce shows that the commercial sector is optimistic about Hong Kong's economic growth in the coming two years. About 67 percent of surveyed companies predicted Hong Kong's real economic growth in 2005 up three to seven percent, and 3.6 percent estimated a growth of over seven percent.
Another survey by the American Chamber of Commerce (AmCham) in
Hong Kong showed that nearly 100 percent of companies surveyed predicted better business in 2005.
"Hong Kong continues to be a very attractive place to do business, its economic fundamentals continue to be strong, and we expect further economic growth by 2005," AmCham chairman Lucille Barale said.
According to the experts, Hong Kong's economic growth in 2005 will be stimulated with the expansion of RMB business in Hong Kong, further cooperation between
Hong Kong and the neighboring Guangdong Province, and the inflow of investments.
Hong Kong Monetary Authority noted in a recent report that the economic growth pace of
Hong Kong will slow down along with that of the world in 2005.
Hong Kong will be faced with risks and unclear factors including the development trend of US dollar, oil prices and mainland's economic macro control.
