HK 'sticking to its forecast for 2 to 3pc GDP growth'

RTHK

3 days ago

HK 'sticking to its forecast for 2 to 3pc GDP growth'
Financial Secretary Paul Chan says extreme caution is needed when rolling out new measures. Photo: RTHK
Financial Secretary Paul Chan said on Monday the government is maintaining its forecast for Hong Kong's GDP growth at two to three percent for the year amid a slight easing in international trade tensions.
Speaking in a Legislative Council panel meeting, he said the Hong Kong economy expanded solidly in the first quarter, with GDP increasing by 3.1 percent year on year.
External trade, one of the driving forces of economic growth, saw an outstanding performance, with the total exports of goods growing 8.4 percent.
Chan said the government's GDP growth forecast for the year remains the same as that announced in his Budget.
Some legislators expressed concerns over slow consumption among tourists and local residents, with Liberal Party lawmaker Michael Lee asking if the authorities have considered introducing policies to boost consumption.
The financial secretary said estimates are for the consolidated government account to achieve a balance in the current financial year but that extreme caution is needed when rolling out new measures.
"For the capital account, we have to accelerate the development of the Northern Metropolis and our land sale revenues have not recovered, so we are under a fiscal deficit," he said.
"We need two to three years' time to achieve a balance, including through the issuance of bonds.
"If we need to introduce policies, we have to strike a balance between various aspects."
Chan also said the unemployment rate was 3.4 percent between February and April, an increase from the 3.1 percent recorded in the fourth quarter of last year.
He stressed that protecting local employment is always the priority and the authorities will make adjustments to labour importation programmes when necessary.