The Director of Hong Kong Economic and Trade Office, Canada, Mrs Rosanna Ure, appeared on Canadian Broadcast Corporation (CBC) Newsworld Television today (January 24), updating viewers on the latest economic situation in Hong Kong.

Interviewed by programme host Jeannie Lee, Mrs Ure said Hong Kong's economy rebounded last year from the downturn of the Asian financial turmoil in 1998.

In the third quarter of 2000, Hong Kong's gross domestic product (GDP) grew by 10.4 per cent while the Hong Kong Special Administrative Region Government revised its overall growth forecast for the whole year to 10 per cent from 8.5 per cent.

One of the reasons for the economic growth was the boom in tourism when Hong Kong saw the arrival of 13.06 million visitors last year - a 15 per cent increase over 1999.

In addition, mainland China's booming economy also benefited Hong Kong's import, export and re-export because the city is the gateway to China for investors.

With the economy gradually getting back on its track, Mrs Ure said Hong Kong people were willing to spend more on products and services. In the first 11 months of 2000, retail sales grew by 9 per cent in volume over a year earlier.

Private sector expenditure on machinery and equipment was up 27 per cent in the third quarter of 2000, indicating that companies were gearing up for capacity expansion.

On possible economic slowdown in the U.S. and its impact on Hong Kong, Mrs Ure said because the U.S. was one of the main trading partners of Hong Kong therefore it would affect Hong Kong as the rest of the world.

On the other hand, Hong Kong would benefit a lot from China's imminent accession to the World Trade Organization (WTO).

"We believe the Chinese market will be wide open to a lot of businesses and Hong Kong. Having been doing business with China for 20 years, we have accumulated a lot of experience and expertise in China trade.

"The opening up of the Chinese market will certainly mean a lot of opportunities for Hong Kong businesses," she stressed.

Asked on the performance of the Hong Kong stock market last year, Mrs Ure said since Hong Kong's economy was small and open therefore it was subject to international market fluctuations.

Hong Kong embarked on the strategic market reform last year by merging the two stock exchanges and their three clearing houses to form the Hong Kong Exchanges and Clearing Limited (HKEC) to enhance competitiveness in response to the global challenges.

"It will enhance both the regulatory regime as well as enhancement in the liquidity of the market," Mrs Ure added.

The interview will be aired again tonight at 6 p.m. (Eastern Time) on CBC main channel and at 7 p.m. (Eastern Time) on CBC Newsworld.

For further information please contact Chief Information Officer, Jean Chan [email protected].

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