|(2014-15 Budget) HK economy expected to grow by 3-4pc in 2014
Hong Kong economy expanded by 2.9 percent in 2013, as compared to a 1.5-percent growth in 2012, said Financial Secretary John Tsang Chun-wah, announcing the fiscal budget for 2014-15.
He expects the GDP will growth 3-4 percent in 2014, lower than the average annual growth rate of 4.5 per cent over the past decade.
Despite the slow recovery in the US and Europe dragging Hong Kong's trade performance, the territory maintained a strong growth thanks to the robust economy in China, he said.
''More than half of Hong Kong's exports of goods went to the mainland market, outpacing other markets,'' he said, adding that visitors from up north accounted for 75 percent of the total arrivals.
Tsang said the headline inflation was 4.3 percent in 2013. Underlying inflation slowed down to 4 percent last year, from 4.7 percent recorded in 2012. Headline inflation is expected to ease to 4.6 percent, with underlying inflation down to 3.7 percent, Tsang said.
Jobless rate stayed at a low level of 3.3 percent, backed by strong local consumption market.
Given the solid performance in economy, Tsang warned that ultra-low interest rates and abundant liquidity under the loose global monetary environment will continue to bring volatility to the market.