In the 2010-11 Budget, the Financial Secretary of the Hong Kong Special Administrative Region Government announced a wide range of initiatives with a view to consolidating the economic recovery, developing the economy and building a caring society. On the economic front, measures are introduced to ensure a stable and healthy development of the property market, develop the four pillar industries, promote the six new economic areas, and enhance regional integration. A relief package worth roughly HK$20 billion was announced to help support the recovery and relieve the burden of the community.
The economy improved further and resumed year-on-year growth of 2.6% in the fourth quarter, led by strong domestic demand and improving external sector. For 2009 as a whole, GDP fell by 2.7%. The outlook for 2010 is cautiously optimistic. GDP is forecast to grow by 4% to 5% in 2010, with headline and underlying consumer price inflation forecast at 2.3% and 1.5% respectively.
The economy continued to recover on entering 2010. Merchandise exports rose notably further in January by 18.4% in value terms over a year earlier, while headline inflation remained modest at 1.0%.
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