| Abstract | As a result of the chain effects of the prolonged financial crisis in Asia, Hong Kong's real Gross Domestic Product (GDP) growth seems to be easing off considerably in the fourth quarter of 1997. However, the rate at which growth factors keep falling presages that the real economic growth for the fourth quarter will probably drop to around three percent. This is expected to continue into the first half of 1998. Standard Chartered economists note that the Hong Kong dollar link is crucial in underpinning economic stability and confidence. The extent of the fall in property prices and rents, in wages, or in inflation, however, will be determined by how far Hong Kong's competitiveness would be eroded by developments in the region. |
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