Press Release - January 31, 2002

Despite a more difficult external environment and with local sentiment hit by a further weakening in the asset markets and rising employment, Hong Kong�s Gross Domestic Product (GDP) is forecast to have yielded zero growth in real terms in 2001.

�Amidst the unfavourable global economic environment, the HKSAR government attains a non-negative economic growth in 2001 Compared with some Asian countries that yield a negative growth, Hong Kong is better off comparatively,� Mrs Rosanna Ure, Director of the Hong Kong Economic and Trade Office said (Canada) today (January 31) at a media briefing in Toronto.

According to the latest figure released, on a year-on-year comparison, Hong Kong�s GDP fell by 0.3% in real terms in the third quarter of 2001. For 2001 as a whole, the value of total exports of goods fell by 6%, comprising a 5% decline in the value of re﷓exports, and a 15% drop in the value of domestic exports. With a slightly smaller decline of 5% in the value of imports of goods, the visible trade deficit rose modestly to C$17.4 million, equivalent to 5.6% of the value of imports of goods, in 2001, from the corresponding deficit figures of C$17 billion and 5.1% in 2000. Hong Kong�s official foreign currency reserve asset is amounted to US$111.2 billion at the end of December 2001.

For Hong Kong tourism, 2001 has been a good year. Visitor arrivals for the first 10 months of 2001 was 11.28 million, representing a 5.3% increase on the same period in 2000. Tourism spending in the first half of 2001 was C$6.25 billion (HK$31.26 billion), 7.7% higher than the same period last year. Total visitor arrivals in Hong Kong for 2001 reached a new record of 13,725,332, representing a 5.1% growth.

�Given the current global economic situation, Hong Kong still offers unique opportunities to overseas companies in such sectors as tourism, infrastructure, transportation and railroad development. With the opening of the Hong Kong Disneyland in 2005, services in such sectors will be in great demand,� she added.

While being hit hard by layoffs and downsizing, Canadian companies still hold keen interest in Hong Kong. �Although many Canadian companies are experiencing a difficult time, they still have not given up their plan to invest in Hong Kong. We keep a close contact with them and update them of the latest developments in Hong Kong to get them prepared for the expansion to the Asia market,� Mrs Ure said.

As for the work of the HKETO, Mrs Ure said 2001 had been a busy year for HKETO. However, 2002 will be more challenging with more activities organized to promote economic and trade between Canada and Hong Kong, and to bring Hong Kong�s culture to major Canadian cities.

To celebrate the 5th Anniversary of the establishment of the Hong Kong SAR, a series of promotional events are being planned, which include an exhibition on Hong Kong�s infrastructure projects, she added.

For more information, please call: John Tam, Chief Information Officer of Hong Kong Economic and Trade Office at: (416)456-8623 or email: [email protected] or Elison Chu, Senior Information Office,
[email protected].