Export
Issue No. 46 - April/May 2009
Hong Kong fuels infrastructure boom
Hong Kong’s Government has plans to implement a bonds program to provide more diversified investment products and vehicles to attract overseas and Mainland capital to HK’s financial system.
The government will also promote regional cooperation and economic integration with the mainland in priority areas of finance; service industries; infrastructure and town planning; innovation and IT.
As an infrastructural link, Hong Kong will promote Renminbi as its settlement currency. The area also intends to promote itself as southern Asia’s wine and gourmet centre following the success of its excise tax cuts last year. Wine imports grew 82% in March-December 2008 and authorities are looking forward to the World of Food and Wine festival in October-November.
David reports HK Government spending in 2009- 10 will exceed HK$300 billion with operating expenditure 19% higher than 2007-08. Capital works spending will exceed HK$39 billion (A$7.8 billion) and the deficit will be HK$39.9 billion (A$8 billion or 2.4% GDP).
Trade-dependent Hong Kong has been hard hit by GFC effects in Asia and globally, but the special area’s infrastructure development plan shows the export gateway isn’t taking the global downturn lying down. David Yip, Deputy Director of the Hong Kong Economic & Trade Office in Sydney delivered a budget wrap in Adelaide recently which forecast its economy will contract 2% to 3% under due to shrinking external and domestic demand, but headline ...
