Businesses affected by SARS have seen improvements since the World Health Organisation lifted its travel advisory, a Government survey has found.

Government Economist Tang Kwong-yiu told a Legislative Council Financial Affairs Panel today that the situation is improving. A Financial Services Bureau survey found business receipts of the 500 companies interviewed dropped by about 7% a week after the travel alert was removed - less than the 8.5% and 9.2% falls in the previous weeks.

The companies are optimistic that the situation will improve in the coming month. They see an even more upbeat picture three months ahead.

FS recaps economic measures and outlook 

Financial Secretary Antony Leung said, in view of the fact that Hong Kong's economy was adversely affected by the SARS outbreak, the forecast growth rate in real terms of GDP in 2003 has been trimmed from 3% to 1.5%.

In addition, the Government has also adjusted its forecast Consumer Price Index from -1.5% to -2.5%, he added.

He said the Government has, with the approval of the Legislative Council, set aside $1 billion to organise a special campaign to relaunch Hong Kong's economy after the SARS outbreak.

In addition, the Government will also try its best to create short-term jobs to ease the pressure on the job market.