Hong Kong’s economy performs strongly in 2010

| February 23, 2011 | 0 Comments
Hong Kong’s economy performs strongly in 2010

Official figures have today revealed Hong Kong’s economy grew by 6.8% in 2010 - boosted by business ties with mainland China.

As a result, Hong Kong’s Financial Secretary John Tsang, expects the economy to expand by between 4% and 5% this year.

According to analysts, Hong Kong has been benefiting from an increasing number of wealthy visitors from China - due to the weakness of the Hong Kong dollar.

However, rising inflation, as well as a property bubble could be a serious threat to the economy this year.

House prices have soared 60% since the start of 2009 - boosted by low interest rates and a vast range of mortgage products.

The Government has taken action to dampen house prices, such as a sales levy which will see homebuyers pay a tax of up to one fifth of the property’s value if they sell it within two years.

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.

Tags: , , , , Hong Kong, , property bubble, , weakness


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