Why stagflation is highly unlikely to loom in Hong Kong

FS Tsang reveals reasons.

Financial Secretary John Tsang says Hong Kong will not experience stagflation - slow economic growth coupled with high inflation - as external economic conditions are not particularly weak, and inflation is not serious.

Speaking to the media at the airport last night, Mr Tsang said GDP was 2.9% in Q2 and 3% for the first half of the year, while the rise in inflation was not high.

Mr Tsang said measures to stablise the property market are key, and he hoped the Legislative Council could pass the relevant bill as soon as possible.

He said the Government would respond to the market and listen to public views during the Budget consultation, regardless of measures taken abroad.

Mr Tsang is visiting London and Paris for four days to strengthen economic ties.