Bright outlook: Financial Secretary Henry Tang says the economy has recovered strongly since last year, adding that if the trend continues, overall GDP growth for 2004 might exceed the 6% predicted.

Hong Kong's economic outlook is positive with double-digit GDP growth expected in the second quarter, Financial Secretary Henry Tang says.

Speaking at the Hong Kong Economic Summit today, Mr Tang said the economy has recovered strongly since last year. If the trend continues, he says overall GDP growth for 2004 might exceed the 6% predicted.

The Government released the latest consumer price indices this afternoon and they show the 68-week deflation period has ended. (Full Story)

When asked whether he is pleased with the latest CPI figure, Mr Tang said the general consensus of economists is that a healthy dose of inflation is good for the economy, however, he said he did not want to see the CPI increase too quickly, or to become too big, adding that it would put pressure on the other side.

On the possibility of issuing renminbi bonds in Hong Kong, Mr Tang said: "Renminbi developments are something we are always pursuing. However, the renminbi is still not a convertible currency, so with the introduction of the four banking services that we have in renminbi, we are quite happy about the results. It has been steady, it has been active and it has been very constructive, so we are looking to pursue more renminbi services."