Hong Kong’s economic growth beats expectations in Q4
Hong Kong’s economy expanded by 2.3% quarter-on-quarter in the final three months of 2009 – beating analysts expectations.
The figures are further proof that Asia is leading the global recovery and come just a few days after figures showed Taiwan’s economy grew at an annualised rate of 18% in the final quarter of 2009.
Meanwhile, the economy contracted by 2.7% in 2009 – the first decline in 11 years but the figure was much less than the 3.3% contraction the territory’s Government predicted in November 2009.
In his annual budget speech, Financial Secretary John Tsang forecast an expansion of between 4% and 5% this year.
Hong Kong’s economy, which is heavily dependent on the financial sector and exports, suffered deeply during the global economic crisis but emerged from recession in the second quarter of 2009.
However, Mr Tsang has warned of major risks such as the possibility of a property bubble and slower export growth in the second half.
In order to reduce the risk of “a property bubble” and keep housing affordable, Mr Tsang said stamp duty on higher-end properties will rise to from 3.75% to 4.25% from April 1 and the Government will increase the supply of land and residential apartments.
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