Hong Kong reports first budget surplus in 5 years
Hong Kong's Financial Secretary, Henry Tang, indicated that a rebounding economy helped the country post its first budget surplus in the last five years. In his annual budget speech, Tang drew attention to 2004's 8.1% growth rate, the highest rate in five years, and well above the average annual growth rate of 4.8% of the past 20 years. He said he expects a surplus of HK$ 12 billion ($1.5 billion) for 2004-2005, equivalent to 0.9% GDP (Gross Domestic Product). He cited better-than-expected premiums from land sales as one of the major contributing factors to the surplus. Land premiums amounted to HK$31.3 billion. Operating revenues were also higher than expected.