Hong Kong growth surpasses estimates

HONG KONG: Economic growth in the Special Administrative Region (SAR) beat estimates in the fourth quarter and Financial Secretary John Tsang forecast an expansion of as much as 5 percent this year as he moved to counter the risk of a real-estate bubble.

Gross domestic product (GDP) rose a seasonally adjusted 2.3 percent from the previous three months, Tsang told lawmakers in his budget speech yesterday. That compared with a 0.4 percent gain in the third quarter and the 2 percent median estimate in a Bloomberg News survey of five economists.

A stimulus-driven rebound in the mainland, the fastest-growing major economy, is aiding Hong Kong via demand for exports and financial services and 18 million tourist arrivals in 2009. Tsang predicted an expansion of between 4 and 5 percent and announced a higher transaction tax on homes selling for more than HK$20 million ($2.6 million) to reduce the risk of "a property bubble" as capital flows into the city.