Economic growth beats expectations, but finance chief sees clouds ahead
Hong Kong is expected to comfortably achieve economic growth of about 5.5 per cent this year after an unexpectedly strong second-quarter expansion of 6.8 per cent.
The robust performance adds weight to indications by both Chief Executive Donald Tsang Yam-kuen and Financial Secretary Henry Tang Ying-yen that there could be room for tax cuts if the growth continues.
'This is fairly robust growth and it is higher than our expectations,' Mr Tang said yesterday.
The government had decided not to change its full-year gross domestic product forecast of 4.5 to 5.5 per cent growth but now expected it to reach the higher end of the range, Mr Tang said.
He stressed that it was still too early to decide on possible tax cuts as uncertainties about skyrocketing crude oil prices and the likelihood of further interest rate rises still clouded second-half growth.