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Following is the transcript of the media session by the Financial Secretary, Mr Henry Tang, on the Third Quarter Economic Report 2003 at the lobby of the Central Government Offices(West Wing) this afternoon (November 28):
FS: I am pleased to announce that the GDP growth in real terms for the third quarter is 4% over a year earlier. This rebound includes industries such as tourism-related sectors, off-shore trade and export of services. We have also seen an improvement in the labour market conditions.
I am also pleased to see that, for the first time in two years, an increase of 2% in local consumer spending. Private consumption is an important component of our economy and I am very pleased to see that we have a 2% growth in the third quarter over a year earlier. Investment spending has also improved, but our construction sector is still full of challenges.
Also based on the figures that we are seeing now, I am pretty confident that we will be able to achieve the 3% growth that I predicted in October of this year at LegCo.
Deflation remains a challenge, however I do believe that we are making steady improvement on the deflationary cycle and within 12 to 18 months we will probably be out of the deflationary cycle that we have been in for the past five years.
Reporter: Do you have a 2004 forecast?
FS: I have made a five-year, medium-range forecast of 3.5% growth in GDP. We remain of that view.
Reporter: (About 2004 forecast)
FS: Our economist K Y Tang is going to make a further detailed briefing in about five minutes, so I think he will be able to answer many of your questions regarding the detailed figures.
Reporter: Is the 4% growth better than you expected?
FS: Is it better than I expected? How much is enough? It is never enough because we have been through some fairly difficult and challenging times economically, so I am pleased to see this 4% growth in the third quarter and I remain confident that the 3% growth for the whole year, despite having a few months of the SARS outbreak, is achievable and I will be very pleased if we achieve it.
(Please also refer to the Chinese portion of the transcript.)
Ends/Friday, November 28, 2003
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