OK in HK: Hong Kong has had its fair share of economic problems over the past quarter, including Sars, spiralling unemployment and a big budget deficit. but confidence is returning now that the region is free of the virus. Norman Lyle reports on Hong Kong's recovery, bolstered by its new free-trade agreement with mainland China.(Hong Kong)

Financial Management (Chartered Institude of Management Accountants), October, 2003 by Lyle, Norman

Hong Kong, the world's tenth-largest economy and the freest--has had a challenging yea,'. After an impressive start in the first quarter, with real GDP growing by 4.5 per cent, the region suffered the shock of Sars.

But nothing dampens the region's entrepreneurial spirit. The economy is rebounding much faster than expected, helped by the recovery of business travel since the World Health Organisation lifted its warning to foreign travellers on 23 May. Tourist arrivals have recovered by 70 per cent and Hong Kong's major carrier Cathay Pacific, expects to return to full capacity by the end of this month. The stock market hit a seven-month high in July and there was a rush of new listings, mainly from enterprises on mainland China. Despite the health crisis,...