The Hong Kong Special Administrative Region Government (HKSARG) has released the third quarter Economic Report 2000.

The Government Economist, Mr Tang Kwong Yiu, said strong growth momentum in the Hong Kong economy in the first half of 2000 was extended well into the third quarter, with GDP again attaining double-digit growth at 10.4% in real terms over last year.

This came after the growth of 14.2% in the first quarter and 10.9% in the second quarter. For the first three quarters of 2000 as a whole, GDP had a highly robust growth of 11.7% in real terms over a year earlier.

On a seasonally adjusted quarter-to-quarter comparison, GDP rose back by 1.7% in real terms in the third quarter of 2000, having recorded a sharp growth of 5.1% in the first quarter and a modest decline of 0.6% in the second quarter.

Externally, total exports of goods surged by 17.7% in real terms in the third quarter of 2000 over a year earlier, bolstered by sustained global demand and improvement in Hong Kong's external competitiveness over the past year or so.

In the light of the robust growth in the economy, the administration has revised its yearly GDP growth forecast from 8.5% to 10% for 2000.

The Government expected GDP growth for the fourth quarter of 2000 to settle to a more moderate single-digit level, when it would set against a much-elevated base of comparison due to near double-digit growth last year.

Mr Tang said there were several factors that would relate to the short-term economic outlook.

"Externally, the oil price hike, with its possible adverse effect on global economic growth, has emerged as an imminent uncertainty.

"The tempo in the US economy and volatility in the US stock market also warrant monitoring.

"Locally, developments in the two main asset markets could affect sentiment and in turn the level of domestic demand," he said.

Nevertheless, robust growth in Mainland China's economy and China's imminent accession to the World Trade Organization should pose as a distinct positive factor for Hong Kong, the Government Economist added.

Deputy Director of the Hong Kong Economic and Trade Office in Canada, Mr Eddie Cheung said: "With the strong rebound, Hong Kong remains the best place for Canadian investors to do business in Asia.

"The Hong Kong Economic and Trade Office will continue its efforts in facilitating Canadian companies' investment in Hong Kong."

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

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