HK to see up to 5% rise in GDP
Source: Agencies |
February 25, 2010, Thursday
|
Print Edition
Print Edition
HONG Kong's recovery gathered pace last quarter and the economy was expected to grow as much as 5 percent this year, the government said yesterday.
The city's growth rose to 2.6 percent in the fourth quarter from a year earlier amid a combination of stronger exports, tourism and retail spending helped by the Chinese mainland's fast-growing economy.
For all of 2009, gross domestic product shrank a tamer-than-expected 2.7 percent, Hong Kong Financial Secretary John Tsang said.
He predicted growth between 4 and 5 percent this year, but said major risks remain.
Western economies are still dogged by high unemployment and bruised financial systems, Tsang said. "The external environment is still fraught with uncertainties and the foundations of the recovery are not yet firm," he said during an annual budget address.
Hong Kong's government also plans to raise the tax on luxury apartment transactions and increase land supply in a bid to try and prevent the property market from overheating, a trend evident in many Asian markets.
Tsang said in his speech that stamp duties for luxury apartments worth more than HK$20 million (US$2.6 million) would be raised to 4.25 percent of the transaction value from 3.75 percent from April 1.
"The increased risk of a bubble forming in the property market has also aroused public concern about the difficulty in buying homes," Tsang said. "Any such fluctuations in property prices would have a profound impact on the economy, on hundreds of thousands of flat owners and on the public."
Average house prices in Hong Kong have risen nearly 30 percent since the first quarter of last year, sparking concerns that it faces a higher risk of a property bubble than most of the rest of Asia.
Residential property prices have been rising strongly due to demand from wealthy Chinese mainlanders, tight land supply and loose monetary policy.
The plans outlined by Tsang will curb some speculation in high-end property, but analysts believe the impact will be muted on the overall real estate market.
The city's growth rose to 2.6 percent in the fourth quarter from a year earlier amid a combination of stronger exports, tourism and retail spending helped by the Chinese mainland's fast-growing economy.
For all of 2009, gross domestic product shrank a tamer-than-expected 2.7 percent, Hong Kong Financial Secretary John Tsang said.
He predicted growth between 4 and 5 percent this year, but said major risks remain.
Western economies are still dogged by high unemployment and bruised financial systems, Tsang said. "The external environment is still fraught with uncertainties and the foundations of the recovery are not yet firm," he said during an annual budget address.
Hong Kong's government also plans to raise the tax on luxury apartment transactions and increase land supply in a bid to try and prevent the property market from overheating, a trend evident in many Asian markets.
Tsang said in his speech that stamp duties for luxury apartments worth more than HK$20 million (US$2.6 million) would be raised to 4.25 percent of the transaction value from 3.75 percent from April 1.
"The increased risk of a bubble forming in the property market has also aroused public concern about the difficulty in buying homes," Tsang said. "Any such fluctuations in property prices would have a profound impact on the economy, on hundreds of thousands of flat owners and on the public."
Average house prices in Hong Kong have risen nearly 30 percent since the first quarter of last year, sparking concerns that it faces a higher risk of a property bubble than most of the rest of Asia.
Residential property prices have been rising strongly due to demand from wealthy Chinese mainlanders, tight land supply and loose monetary policy.
The plans outlined by Tsang will curb some speculation in high-end property, but analysts believe the impact will be muted on the overall real estate market.
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