Tang Optimistic Despite Record Unemployment Levels
Unemployment in Hong Kong has edged to a new record high of 8.7% for the three
months to July of this year, as its economy reeled from the after-effects of the
SARS epidemic. As of July, the unemployment figure had risen by 9,000 to hit 309,000, and analysts have
forecast that the jobless rate will peak at 9% later in the year before falling
back. Despite this, Finance Secretary Henry Tang remains optimistic and believes that
the worst of the territory's economic crisis is now behind it. "The unemployment rate is beginning to stabilise, the increase has moderated,"
Channel News Asia quoted the Finance Secretary as announcing. "We also believe
this moderation shows that our economy is beginning to show some signs of recovery
and I hope we can realise this recovery," he added. One encouraging sign for the territory however, is the apparent recovery in the
tourism sector; recent figures show 1.3 million tourists visited Hong Kong
during July - up 80% on the previous month.
According to Daniel Chan, chief economist at DBS Bank, if tourism recovers
a further 20% in the next year, it could add 1% to the jurisdiction's GDP level. .
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