china-hotel china-hotels
Home China Global
Info Center
Destinations Flight Comparison Community guangzhou-hotels
My Account
Economic Recovery underway in Hong Kong: IMF
Update: 12/6/2009 12:29:00 AM Source: Hong Kong Hotels

The International Monetary Fund ( IMF) said on Thursday that economic recovery is underway in Hong Kong, fueling by economic growth of the Chinese mainland, supportive government policies and accommodative monetary conditions imported from the United States.

The IMF also recognized the efforts of Hong Kong Special Administrative Region (HKSAR) government to aid economic recovery, suggesting it further modernize the current budgetary management system.


In its staff report on Hong Kong released Thursday, the IMF said the economy should steadily strengthen and unemployment should decline in the coming months. Consumer price inflation is projected to be close to zero by the end of 2010.

Noting Hong Kong's financial system has withstood the downturn well. The Fund said banks in Hong Kong should be readily able to absorb a decline in profits that is likely to result from higher provisioning and tighter interest margins in the coming months.

To mitigate the risk of a credit-asset price cycle, the Fund suggests introducing measures in addition to the continued strict enforcement of the existing regulatory regime in maintaining financial stability.

The Fund also agreed with the increase of the deposit protection limit and commended the steps taken to co-ordinate with Singapore and Malaysia on the exit from the blanket deposit guarantee.


Expecting the fiscal outturn for this year could involve a much smaller deficit than planned, the Fund said the risks to the global economy argue for a supportive fiscal stance to be maintained in the 2010-11 Budget. It also supported the contribution of private financing sources to a larger share of health care spending.

Maintaining its long-standing support of the linked exchange rate system, the IMF said that maintaining a high degree of flexibility in the economy, particularly in the labor market, will be essential for the real exchange rate to adjust to external shocks.

Expecting the accommodative monetary conditions will remain in place for an extended period, the Fund said the recent extraordinary expansion in the aggregate balance will be unwound at some future point, leading to capital outflows. Communicating the authorities' policy actions during this period will be critical to avoid any disruptive market movements.


Welcoming the report, Financial Secretary of the HKSAR government John Tsang said that the global economic outlook remains subject to considerable uncertainties. "We are mindful of the prevailing risks in the external environment and will continue to adopt necessary measures to sustain economic growth," Tsang said.

Hong Kong Monetary Authority Chief Executive Norman Chan welcomed the fund's continued support of the linked exchange rate system. "We remain firmly committed to the link, which has served Hong Kong extremely well since 1983 as the anchor for monetary and financial stability," Chan said.

Editor: Canton Fair

Canton Fair Hotel Special  Hong Kong Hotel Deals  Compare and Reserve International Flights


Related News

  • Dongguan's Exports Improve in H3 2009
  • Mainland Richest Man a Car Producer
  • A Chinese Worker Economic Observation through Making Christmas Products
  • China Credit Card Defaults Rise 131%
  • Chininese Shoe Exporters Facing Pricing Pressures, Losing Money
  • Canton Fair Hotels | Canton Fair Hotel | Canton Fair Review | Canton Fair 2011 | 109th Canton Fair | China Hotels Review | Canton Fair
    Site Map | About Us | Terms and Conditions | Privacy | Communities | Contact Us | Links
    Foire de Canton Hôtels Chine | La Feria de CANTÓN Hoteles | Übersicht Kanton-Messe Hotels | Fiera di Canton Hotel Cina | Feira de Canton Hotéis
    Canton Fair 2011 | Shanghai Hotels | Guangzhou Hotels | Shenzhen Hotels | Dongguan Hotels | Beijing Hotels | China Hotels | China Accommodation
    Hangzhou Hotel | Shanghai Hotel | Guangzhou Hotel | Shenzhen Hotel | Dongguan Hotel | Beijing Hotel | Canton Fair | XiAn Hotel | Qingdao Hotel
    Hong Kong Hotels | Taipei Hotels | Tokyo Hotels | Los Angeles Hotels | Las Vegas Hotels | New York Hotels | HongKong Hotels | Frankfurt Hotels
    Copyright@2011, All Rights Reserved.