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HK's GDP Expected to Grow 4.6 Percent This Year
CLSA Emerging Markets (CLSA) said Wednesday the real GDP growth in Hong Kong is predicted to reach 4.6 percent in 2003 and 8.2 percent in 2004, spurred by improving domestic demand, confidence and investment along with strong export growth.

Deflation, which has been present in the local economy for more than 50 consecutive months can be expected to come to an end later this year, thanks in part to the weakening US dollar, as the adjustment process related to the Asian financial crisis in late 1990s comes to an end.

Meanwhile, the unemployment is predicted to drop to 6-6.5 percent by the end of the year from the 7.1 percent seen in the three months to December last year.

CLSA expected the Hang Seng index will trade up to 12,000 points this year while China-related stocks also perform strongly.

(Xinhua News Agency January 23, 2003)

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