Tsang sees 2013 as a good year for Hong Kong

Financial Secretary John Tsang believes the city will perform slightly better this year.

Tsang bases his optimism on China’s accelerating economic growth while markets in Europe and the U.S. seem to be more stabilized than in 2012. His upbeat outlook is in stark contrast to a warning in November that Hong Kong might enter recession this year if its major partners show a loss of growth momentum or signs of contraction.

The government expects Hong Kong’s gross domestic product to expand 3.7% percent, up from an expected 1.5% in 2012.

Tsang promised to do more for the city’s middle class, especially the younger generation that he said is under immense pressure to pay housing mortgages and cope with education expenses.

Household debt in Hong Kong almost doubled to HK$1.21 trillion in 2012 from HK$662.8 billion in 1997 when the housing bubble in the city burst, said the government. Household mortgage loans jumped 64% to HK$888.9 billion during the period, while credit card and personal loans surged almost three times to HK$320.1 billion.