FS's transcript on the latest GDP figure

FS's transcript on the latest GDP figure
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Following is the transcript of the media session (English portion) by the Financial Secretary, Mr Henry Tang on the latest GDP figures at Central Government office this evening (August 26):
　
Reporter: Mr. Tang can you say a few words about the latest GDP? And also why you decide not to make any changes to the overall GDP growth forecast?

Financial Secretary: The GDP growth in the second quarter is 6.8%, and the GDP growth in the first half of the year is 6.5%. This is a fairly robust growth and it is higher than our expectation. We have decided not to change forecast for the whole year at 4.5% to 5.5%, because we feel that there are a number of uncertainties over the horizon. One of them is obviously the rising trend in interest rates. We think that the increases have not finished, and there might be a few more down the road. And secondly the increase in oil prices, it will have a dampening effect on some of our trading partners, and it will filter down to affect our growth.

Reporter: Can you also say a few words that with this continuous GDP growth, do you think there is a bigger possibility for a tax reduction?

Financial Secretary: Yes, I said during the third reading of this year’s budget that if the economic growth continue to be robust then there would be more room for tax reductions. The Chief Executive during his campaign, as well as recently, also mentioned the same thing. So, we are entirely consistent. But I also like to point out that it is a bit too early to make these kinds of decisions because of these uncertain factors over the horizon. I would like to observe a little while longer before coming to make this decision.

(Please also refer to the Chinese portion of the transcript.)

Ends/Friday, August 26, 2005
Issued at HKT 19:41

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