| Abstract | This article gives a projection on Hong Kong's economic prospects for 1997. Hong Kong's economy is expected to strengthen in 1997, with a rise in gross domestic product of 5.2% in real terms. External trade should improve in 1997, but the pace of the recovery is expected to be slow. Stronger global demand will help to support the territory's trade volumes. A steady interest rate environment in 1997 will help to sustain the current growth momentum, despite the remaining uncertainty about the future course of interest rates. Inflation is projected to accelerate modestly to 6.8% in 1997 as a result of the more vibrant economic activity and the weakening of the favourable factors that helped to soften price pressures in 1996. |
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