The Hong Kong Special Administrative Region (SAR) has retained its rating as the world's freest economy in the 2000 Index of Economic Freedom released by the Heritage Foundation and the Wall Street Journal.

The SAR had been rated the world's freest economy for six consecutive years since the Index was first published in 1995.

At a dinner hosted by the Heritage Foundation and the Wall Street Journal in Hong Kong on Tuesday (November 30), the Chief Executive , Mr Tung Chee Hwa, said: "We appreciate the honour you have done us, and I guarantee you that we won't stop here. This is not a matter of prestige alone, and Hong Kong is certainly very proud of having the title, but we consider it the cornerstone that will guarantee our continued economic success and competitiveness in the next millennium."

Mr Tung said Hong Kong's remarkable economic success over the past few decades owed a great deal to its free and market-oriented economy with fair competition, and that the Government was committed to building the foundation for the healthy development of the market according to sound economic principles.

The Financial Secretary, Mr Donald Tsang, in welcoming the news said: "This is a recognition that Hong Kong continues to adhere to the free-market principles that have provided the opportunities for our entrepreneurial and hard working community to generate such remarkable economic growth."

The 2000 Index of Economic Freedom was based on an analysis of 50 economic variables in 10 broad categories across 161 economies.

Meanwhile, an International Monetary Fund (IMF) Staff Mission to Hong Kong has affirmed that the SAR's economy is showing signs of recovery.

The Mission forecast a 1.25 per cent GDP growth for 1999, supported by further strengthening of exports, improved private consumption and high public investment.

The forecast, made before Hong Kong's third quarter GDP figures were released, projected a 3.5 per cent growth in 2000, based on the positive impact of China's impending entry to the World Trade Organisation, easing of monetary conditions as deflation declines, and continued strengthening of global economy.

The assessment was made by the Mission in their concluding statement following the completion of the Article IV Consultation mission with China in respect of Hong Kong SAR, which involved a review of Hong Kong's exchange rate, fiscal and economic policies.

Statistics released by the HKSAR Government last week showed that Hong Kong's economy should have attained a growth of around 4.5 per cent in real terms in the third quarter over a year earlier, and projected a 1.8 per cent GDP growth for 1999.

For further information please contact Chief Information Officer, Frank Chuan.

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