The economic environment in Hong Kong has improved markedly after the SARS crisis and the real GDP growth will grow by 2.2 percent in 2003, said the APEC Study Center of the University of Hong Kong on Monday.

The center forecast that the real Gross Domestic Product (GDP) in the third quarter of 2003 will increase by 2.3 percent and by 2.6 percent in the fourth quarter, turning around from the 0.5 percent contraction in the second quarter.

It said there were positive developments which served to bring Hong Kong out of its latest economic recession experienced in the first half of this year, including the rapid rebound in visitor arrivals, the signing of the Closer Economic Partnership Arrangement and more capital inflows.

The center's director professor Richard Wong said the economic recovery which started in June could be expected to continue.

The current economic policy with its primary focus putting on stimulating economic growth is conducive to the recovery process, he said.

However, he noted that the short-term outlook is still clouded by the likelihood of re-emergence of SARS in the coming months.

(Xinhua News Agency October 14, 2003)