Consolidating our Recovery, Rising to the Challenges
14. Although our economy is back on
an upswing and the fiscal position of the Government has
improved, we are still faced with many challenges.
Being highly externally-oriented, our economy is
very sensitive to outside factors such as oil prices,
fluctuations in US dollar exchange and interest rates,
the pace of the Mainland's economic growth and changes
in its policies. The
development of the Mainland has also emerged as a strong
competitive force for
, threatening even some of our industries which had long
had an edge over our competitors, such as logistics.
Furthermore, increasing globalisation has a
continuous impact on our strengths.
There are also potential problems in the local
example, unemployment in certain industries remains
high, our economy is undergoing adjustment and the
problem of the structural deficit has yet to be
the other hand, as our economy continues to improve, we
must assiduously monitor inflation and property price
movement, so as to avoid a major increase in business
In the face of these
challenges, we cannot afford to let our guard down.
Instead, we should constantly try to innovate and
seize every opportunity.
For the Government's part, we will uphold the
principle of 岞arket Leads, Government Facilitates?
and actively promote economic growth by facilitating the
development of the market and providing a favourable
platform for the business community.
We will continue our
efforts to secure more favourable market access for
local enterprises and to protect the lawful rights of
will maintain a healthy social system and a
We will provide essential services and
facilities, for example by investing in infrastructure
and providing assistance to meet the basic needs of
Moreover, we will persevere with rigorous control
of expenditure and allow the private sector more room to
Promoting social stability and the economic development
of Hong Kong will continue to be the key theme of this
year's Budget. In striving to improve our business
environment, we will encourage fair competition, foster
economic co-operation with the Mainland, assist Hong
Kong enterprises to access the Mainland market, enhance
the competitiveness of our financial, logistics and
tourism industries, improve training and attract more
talent. I hope that these measures will help create an
environment in which enterprises can thrive and give
full rein to their creativity, and so raise Hong Kong's
competitiveness as a knowledge-based economy. Boosting
the economy will also provide us with more opportunities
to realise our potential and upgrade our standard of