July 10, 2012

Financial Secretary John Tsang today told lawmakers Hong Kong should be able to attain GDP growth of 1% to 3% in real terms this year, barring any further blows to world financial markets.
 
Speaking to the Legislative Council Financial Affairs Panel, Mr Tsang said Hong Kong’s exports and overall economy may see some improvement in the second half of this year, as the Mainland economy is expected to regain some momentum. 
 
Due to mounting uncertainties in the external environment, in particular, over the eurozone debt crisis, the Government does not rule out the possibility of adjusting the forecast, he said, adding the administration will make an assessment in August when announcing the economic performance for the second quarter.
 
Turning to the residential property market, he said overall residential flat prices rose by less than 1% in May. The Land Registry received only around 5,900 sale and purchase agreements for residential property in June, down 30%.
 
The property market is facing two opposing forces: weakness on the external front, and super-low interest rates. This could trigger large fluctuations with unpredictable movements, he said. The Government will stay alert to housing market bubble risks and, where necessary, roll out further measures to ensure the healthy and stable housing market development.