First quarter growth on track, says Paul Chan

Hong Kong's gross domestic product is expected to grow within the forecast range of between 2.5 and 3.5 percent for the first quarter, maintaining moderate growth for a fifth consecutive quarter, Financial Secretary Paul Chan Mo-po said yesterday.

Chan had noted at an earlier event that the city's economic forecast will have to be adjusted as interest rate cuts in the US may be delayed.

In his weekly blog, Chan said January-March GDP will be within the full-year growth forecast revealed in February.

The government will reveal the exact advance estimate for the first-quarter GDP this Thursday.

As Hong Kong seeks new sources of growth, mega events such as fireworks will be held to lure more tourists, Chan said.

Chan also said the benchmark Hang Seng Index rose 8.8 percent in last week, its best weekly performance in 13 years.

On Saturday, Chan said it was originally forecast the city's economy would grow at a slower pace first and then see higher growth, but the pace may change as the US may delay its interest rate cuts.

However, Chan added he expects no major adjustment in the forecast as Hong Kong's exports were stronger than expected in the first quarter and inflation remained moderate, coupled with a low unemployment rate and an increase in household income.