Hong Kong says economy to shrink 2-3 percent in 2009

HONG KONG, Feb 25, 2009 (AFP) - Hong Kong's economy will shrink by between 2.0 and 3.0 percent in 2009, the city's financial secretary John Tsang said in his annual budget speech Wednesday.

Hong Kong slipped further into recession in the fourth quarter of 2008 with GDP falling 2.5 percent year-on-year, Tsang said.

"This once-in-a-century financial turmoil has spread from the financial markets to the real economy, leading to a synchronised global recession," Tsang told legislators.

"Being a small, open economy, Hong Kong will inevitably be hit by the turmoil."

Hong Kong fell into a recession in the third quarter of 2008, earlier government figures showed.

Source: AFP

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