Updated at 5.30pm: The government has adjusted its forecast for Hong Kong's economic growth for 2004 from six per cent to 7.5 per cent - following better than expected gross domestic product (GDP) statistics. The Census and Statistics Department on Friday released figures showing second quarter GDP growth was 12.1 per cent. Announcing the figures, Chief Executive Tung Chee-hwa said phase three of the Closer Economic Partnership Arrangement (Cepa) was being planned. This would provide the economy with another boost. Earlier on Friday, phase two of Cepa (Cepa II) was signed in Beijing by Financial Secretary Henry Tang Ying-yen and mainland commerce vice-minister An Min. The Cepa II agreement includes zero tariffs for another 713 Hong Kong products entering China. This is nearly double the 374 products currently enjoying zero tariffs. The second quarter GDP growth has been the largest since the third quarter of 2000. The first quarter GDP growth was seven per cent. Exports of goods grew by 18 per cent while exports of services increased by 31.3 per cent in the second quarter. Inbound tourism recorded a growth of more than 100 per cent, statistics revealed. But Mr Tung said he was concerned about the unemployment rate. This remains static at 6.9 per cent. 'My prime concern at the moment is the decline in unemployment is too slow,' he said. Mr Tung said while benefits from Cepa would be long-term, the tourism industry would benefit immediately from preferential treatment under the agreement. He said the third phase of Cepa would focus on further relaxation of tourism and mutual recognition of professionals. Cepa II also entails a mutual recognition of the qualifications of structural engineers in Hong Kong and China. An agreement for exemption of professional examination papers in the accounting sector in both places was also reached. Currently, professions enjoying mutual recognition include estate surveyors, architects, insurance practitioners and patent agents.