Hong Kong sees 'modest growth' for 2013

HONG KONG (AFP) - Hong Kong's economy is expected to see "modest" growth this year owing to tepid exports, the city's finance chief said on Wednesday as he delivereda budget aimed at taming soaring property prices.

Mr John Tsang warned that 2013 will remain a challenging year due to the slow pace of recovery in the United States, the ongoing debt crisis in Europe and the uncertainty surrounding Japan's stimulus measures.

But he cited strong domestic demand, an uptick in construction and tourism, and the mainland's return to strong growth momentum as boons to the city as it seeks to return to the 4.5-per-cent growth average seen over the past 10 years.

"The whole world will have to face wars on three fronts, namely 'currency', 'trade' and 'geopolitics'. As a highly open and small economy, Hong Kong will be impacted by the development of these wars to a certain extent.