Bull's-eye!: Financial Secretary Anthony Leung said he is extremely pleased to see a lot of highly creative and quality products at the Gifts & Premium, and Houseware Fairs at the Convention & Exhibition Centre.

Financial Secretary Antony Leung said today that the deficit for 2003-04 will be larger than the original estimate, largely because of the atypical pneumonia outbreak.

After visiting the Gifts & Premium, and Houseware Fairs at the Convention & Exhibition Centre, Mr Leung said the outbreak will impact Hong Kong's economy and the Government's finances.

The Government announced last week an $11.8 billion economic relief package. He said this will come out of our fiscal reserves and therefore will come into the fiscal deficit as well.

"But exactly how large the number will be, I think it is too early to tell," he said, adding that controlling the virus spread is the Government's number one task.

"We will spare no resources in curbing the spreading of this disease."

Once the virus is under control, the Government will launch measures to revive the economy.

"And we are working on those measures," he said.

Mr Leung added he is pleased many of the exhibitors at the fairs are reporting good business, despite fewer visitors.

"Actually, some of them report better business than last year, so indeed the result is extremely encouraging."

The fair is organised by the Trade Development Council.