Hong Kong economy may slip more
Associated Press
HONG KONG — Chief Executive Tung Chee-hwa warned that economic growth in Hong Kong would dip further this year because of the slowdown in the United States, Europe and Japan.
Bloomberg News Service
"The fact that there's been a major downturn in the U.S. and in Europe, as well as the continued sluggish economy in Japan, has affected us very badly this year," Tung told a reception of representatives from 89 overseas companies which have set up offices or increased their presence in Hong Kong this year.
Lawrence Ellison, chairman of Oracle, and four other corporate executives were recently added to Hong Kong Chief Executive Tung Chee-hwa's Council of International Advisers.
"I know many in Hong Kong have been affected adversely by the economic downturn," Tung said. "The economy this year may slow down somewhat more and the unemployment this year ... will go up slightly. But we must be confident of our future."
Tung's comments come ahead of the release of Hong Kong's economic growth figures for the second quarter on Aug. 31, when the government is expected to cut its forecast for the year from growth of 4 percent to 3 percent.
The unemployment rate stood at 4.6 percent for the April-June period.
Tung also announced five new members to join his Council of International Advisers, increasing its membership to 19.
The new members include Intel Corp. President Craig Barrett, Oracle Corp. Chairman Lawrence Ellison, AOL Time Warner Inc. Chief Executive Officer Gerald Levin, Goldman Sachs Group Inc. Chairman Henry Paulson, and British Petroleum PLC. Chairman Peter Sutherland.
The council, established in 1998, meets roughly once a year to advise Tung on strategic issues essential for the long-term development of Hong Kong.
