HK's growth rate hostage to external factors: FS
Financial Secretary Paul Chan said on Sunday that external factors will play a major part in whether the SAR can achieve the upper end of a projected 3.5 to 5.5 percent economic growth rate.  His comments follow the news that Hong Kong's exports in April dropped by 13 percent compared to the same period last year.  Speaking on a Commercial Radio programme,  Chan said the three main drivers of Hong Kong’s economic growth are exports, fixed investment, and consumption, noting that exports have not performed well in the first half due to external influences. “Exports have been declining for five consecutive months. In fact, they had already fallen for four quarters last year. By April this year, the cumulative decline was 16 percent. The decline continued in May,” Chan said.  “There are several factors contributing to this. First, there are geopolitical issues in the surrounding regions. Second, the European economy is not doing well, and the US has high interest rates and inflation, resulting in weak external demand. Third, especially in the early stages of this year, the pandemic has affected both the mainland and our cross-border transportation, making the export situation challenging.” The financial chief also said it's essential to attract businesses and talent to enhance Hong Kong's competitiveness.  Hong Kong was recently ranked seventh in the latest World Competitiveness Yearbook by the International Institute for Management Development, trailing behind Singapore and Taiwan - although the government said the pandemic was the major factor in this.  "Since the launch of the Top Talent Pass Scheme in October last year, and the optimisation of several talent-related policies, we have received over 84,000 applications by the end of May - and have approved nearly 50,000 applications.  “As for attracting key enterprises, we have been in contact with over 100 different companies since December. We are discussing and investing together in promising projects through joint investment funds. Of course, negotiations and discussions on the terms and conditions take time, but this will accelerate our development in key industries, such as healthcare, medical technology, big data, and artificial intelligence. I believe this will have a significant impact on our development," Chan said.