| Abstract | Hong Kong's economy performed strongly in the first half of 1997, driven mainly by robust domestic demand. The strong momentum in domestic demand is expected to continue in the second half of 1997. External trade should improve in the coming months due to stronger overseas demand, but the level is not expected to be enough to revive the territory's trade figures to any great extent. As a result, Hong Kong's growth momentum will continue to be derived from the domestic sector, with real Gross Domestic Product anticipated to attain a 5.4% growth in 1997. Inflation is likely to edge higher in the second half, after being suppressed sharply by the decline in food prices in the first six months. With stronger domestic activity, Comsumer Price Index (A) inflaton should rise by 6.4% in 1997. |
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