BOC reported negative GDP growth rate of 4% in the year to more than 6%

The latest issue of the "Bank of China" report, published yesterday, reviewed the current economic situation in Hong Kong, lowering the forecast for our annual economic growth rate from 2% to 4% and predicting that the unemployment rate would rise to over 6% during the year, but not seriously. 　　The report pointed out that Hong Kong's economic downturn was mainly affected by the economic crisis in the developed economies and the sharp contraction in consumer demand, but fortunately the performance of the tourism and retail sectors was relatively stable, while government consumption recorded an increase and some support for the economy as a whole. 　　The influx of hot money to improve the investment climate the report said that the main impetus for Hong Kong's economic growth in the first quarter disappeared almost entirely, with gross domestic product falling by 7.8%, the second-largest quarter in the past 30 years, with a contraction of about 60% of GDP and a 5.5% per cent decrease in imports and exports. The report notes that the recent influx of capital has made Hong Kong an unprecedented liquidity, with interest rates kept at very low levels, driving the investment market to live, especially after April, the trading volume and prices of the stock market and the property market have rebounded markedly, thus improving the investment and consumption climate. 　　In the future, if the US economy can regain stability, support the export sector and restore confidence in Hong Kong, the major sectors of our economy, such as trade and consumption, should be improved in the second half of the year. The unemployment rate rose to more than 6% in the year based on economic data in the first quarter and the recent improvement in market and consumption, with the BOC Hong Kong lowering its forecast for annual growth from 2% to 4%, and predicting that the unemployment rate would rise to more than 6% during the year, but not seriously. 　　On the price front, Hong Kong will not fall into deflation in the event of a sufficient global liquidity recovery, but not excluding negative growth in consumer prices in individual months, and the composite CPI is expected to rise by 1% in the year. The way out strengthens the service inland function report that, in this global economic synchronous recession, the manufacturing base of strong economy performance worse, showing that no ideal economic structure can withstand various types of financial crisis, which is a service-oriented Hong Kong economic restructuring has a new enlightenment. The key to Hong Kong's economic restructuring is to strengthen the function of serving the mainland market, including promoting the local upgrading of Hong Kong businessmen's manufacturing industry in the mainland, so as to maintain a good link between the trade and logistics industries and the mainland; for the development of the financial industry, one is to grasp the return of business model The second is to expand the RMB business with the help of the opening of the mainland finance and the internationalization of RMB.