If the economy continues to thrive the forecast GDP growth for 2005 will be 4.5% to 5.5%, Government Economist Kwok Kwok-chuen says, adding property prices and interest rates may not see drastic adjustments.

Speaking on a radio talk show, Mr Kwok noted Hong Kong's economy has bounced back from the 1997 financial crisis, with strengthened domestic economic activities.

Despite a number of risks in the external environment, Mr Kwok said the economic outlook will be fine as Hong Kong is an outward-oriented economy and the Government has been upholding the "big market, small government" principle.

However, he said Hong Kong's population is aging, and there is a need to attract overseas talent and professionals to work here. The move also may help bring in more low-skilled jobs.

On the recent surge in property prices, Mr Kwok noted the increase relates to economic improvements rather than speculation. If there is any adjustment in property prices, the revision will not be drastic, he added.

Mr Kwok revealed studies are underway to cut red tape on licensing of cinemas and facilitate business operation, stressing the Government will strike a balance between public safety and business facilitation.