The post-SARS economic recovery is taking place quite firmly in Hong Kong, but there are still structural issues to be addressed.

This is the message from Monetary Authority Chief Executive Joseph Yam in the latest edition of his Viewpoint column on the authority's homepage.

Mr Yam warned that despite the economic recovery, the budget deficit (measured as a percentage of GDP) is still a big one, even by international standards, not to mention the historical standards of Hong Kong.

He said the authority will strive to maintain a favourable monetary and banking environment, and stands ready to assist the Government for the stability and prosperity of Hong Kong.

"And community support is important if structural adjustment in the long-term interest of Hong Kong is to be achieved. There is scope for the imaginative use of financial skills and we stand ready to assist in any way we can," Mr Yam said.

"One traditional role of the central bank or monetary authority is to be financial advisor to government, and we look forward to contributing further to the stability and prosperity of Hong Kong appropriately."