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Hong Kong's economy grew 6.3 percent in 2007; Tsang "cautiously optimistic" about year ahead

Hong Kong's economy grew 6.3 percent in 2007; Tsang "cautiously optimistic" about year ahead

Hong Kong's economy grew by 6.3 percent in 2007, the financial chief said Wednesday, boosted by China's dynamic economic growth.
Hong Kong's gross domestic product is likely to increase by 4 percent to 5 percent on year in 2008, which is lower than that in the past four years but higher than the average growth rate over the past decade, John Tsang told lawmakers in his annual budget speech.
The city's fiscal reserve will stand at HK$484.9 billion (US$62.3 billion; euro41.5 billion) by end of March, he added.
Tsang said the full impact of the U.S. sub-prime mortgage crisis on the global economy hasn't been felt, but the impact on Hong Kong and Asia has so far been limited.
He remained "cautiously optimistic" about Hong Kong's economic prospects for this year.
"The sustained rapid economic growth of the mainland and its increasingly intensified economic integration with Hong Kong will greatly promote our economic development and cushion the impact of the slowdown on Hong Kong," Tsang said.
Delivering his budget, Tsang also proposed to immediately exempt the duties on wine, beer and all other alcoholic drinks to promote the local wine trading and distribution industry. The 80 percent duty was halved to 40 percent last year.
He also suggested a slew of tax relief measures which included a range of one-off income and property tax rebates, and lowering the standard tax rate.


Updated : 2021-04-23 20:26 GMT+08:00