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Hong Kong's GDP grows 6.3% in 2007
( Xinhua )
Updated: 2008-02-27 14:36

The gross domestic product (GDP) of Hong Kong grew by 6.3 percent in 2007, higher than the average growth for the past 10 years, Hong Kong's top financial official said Wednesday.

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"In 2007 the Hong Kong economy was vibrant," said John Tsang, financial secretary of the Hong Kong Special Administrative Region (HKSAR) government, when delivering his annual budget speech to the Legislative Council.

"The economic performance in 2007 shows that our economy continues to benefit from the dynamic development of our nation and the rapid growth of the global economy. It also demonstrates the ability of our economy to withstand external volatilities," he said.

In the past year, Hong Kong's exports grew notably by 7.9 percent. Domestic private consumption spending was buoyant, registering growth of 7.8 percent, the highest since 1993.

"The strong economic recovery in the past few years has greatly boosted consumer confidence," he said.

In light of the broad-based economic expansion and strong business confidence, most businesses needed to recruit additional staff, he said, noting that the number of employed persons had hit successive new highs.

The latest unemployment rate fell to 3.4 percent, the lowest since the first quarter of 1998, he said, adding that since the recovery of Hong Kong's economy in mid-2003, more than 380,000 jobs have been created.

"The continued expansion of our economy, strong consumer spending and the surge in import prices of foodstuffs has exerted upward pressure on inflation, said the financial secretary.

In addition, the Hong Kong dollar has followed the depreciation of the U.S. dollar against other major currencies, affecting import prices.

The average inflation rate as measured by the Composite Consumer Price Index for 2007 was 2 percent. Eliminating the effects of the rates concession and public housing rental waiver, the underlying inflation rate was 2.8 per cent.

"The inflationary trend that Hong Kong has experienced recently is similar to that in many developed economies," he said.

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