HK's economy grew by more than 8 pct in 2004

[HenryTo]

HK's Tung says economy grew by more than 8 pct in 2004

HONG KONG, March 6 (Reuters) - Hong Kong Chief Executive Tung Chee-hwa said on Sunday that the city's economy grew by more than 8 percent in 2004.
Tung made his comments in front of journalists as he began a meeting with Chinese Premier Wen Jiabao in Beijing, but neither man made reference in public to widespread reports that Tung had resigned.

"It's more than eight percent," Tung told Wen, when asked about the territory's economic growth last year.

Gross domestic product expanded by 3.2 percent in 2003.

The economy of the busy port city and financial centre was buoyed last year by strong exports from China, a recovery in consumer confidence and a record number of tourists.

About 94 percent of Hong Kong's exports are re-exports, mostly to and from mainland China.

Financial Secretary Henry Tang will unveil the actual growth figure and possibly the government's GDP forecast for 2005 in his budget on March 16.

A recent Reuters poll showed most analysts expect economic growth to slow from 2004's rapid pace this year but remain solid as pay rises and the end of deflation support a further recovery in domestic consumption.

Growth in 2005 is forecast at 4.8 percent, the poll of 10 analysts found.

Economists believe export growth will ease this year as global demand is expected to weaken, but some initial reports for January and February show the expected slowdown has yet to materialise.