Hong Kong's economic performance in 2004 has surpassed those of the past seven years and will "reach a stage of post-recovery consolidation and growth in 2005," Hong Kong's Chief Executive Tung Chee-hwa said in the Special Administrative Region yesterday in his policy address for 2005.
Tung noted Hong Kong's economy in 2004 had proven to be the best since the Asian financial crisis of 1997 and surpassed those of the past seven years, with a growth rate of 7.5 percent. In addition, many of its economic indicators registered double-digit growth. He added that city had finally shaken off its economic doldrums and was now on the road to healthy development.
Looking ahead, Tung said Hong Kong's economic growth this year, driven by favorable external factors, "will maintain its growth, and problems such as unemployment and negative equity will be further alleviated."
"All this points to a promising economic outlook," he said.
Tung elaborated that some of the problems that have troubled Hong Kong for a long time have been reduced or eliminated in 2004.
Firstly, employment, a major public concern, has improved, reaching a historic high of 3.3 million.
Secondly, property values have rebounded significantly, with the number of property transactions reaching the highest since Hong Kong's return to the motherland in 1997.
Thirdly, the upturn in the property market had led to a rebound in rents and a gradually improving consumer market. As a result, deflation, which had persisted for 68 months, finally ended in July 2004, Tung pointed out.
He said the government will continue to work toward building Hong Kong as Asia's world city. While reinforcing the traditional strengths, Hong Kong needs to make full use of the scope for development under "One Country, Two Systems" and identify new strengths.
He said Hong Kong should consolidate its four core industries, namely, financial services, producer services, logistics and tourism.
To maintain and enhance people's living standards, Hong Kong must move toward higher value-added outputs, Tung said.
"Only by increasing the knowledge content of our economy and continuing to innovate can we maintain our advantages and sustain development," Tung said.
He said one of the important tasks of the government was to step up the promotion of cultural and creative industries.
"Our aim is to consolidate our core industries, foster a favorable social environment to nurture and attract versatile people with multi-skills, promote development of cultural and creative industries, facilitate transition to a knowledge-based economy, sustain prosperity and enhance our quality of life."
Tung also said the government and the community should provide care and assistance to some low-income families whose circumstances have worsened over the past few years.