IMF praises government's efforts to bolster financial stability
The International Monetary Fund (IMF) in its Staff Report on Hong Kong released December 9 commends the Hong Kong Special Administrative Region Government’s (HKSARG) measures to contain the contagious risks from the global financial turmoil and reiterates its support for the Linked Exchange Rate System (LERS).

The IMF projects Hong Kong’s economic growth to fall noticeably in the coming months amid the still unfolding turbulence in the international financial markets.

Chief Executive announces economic stimulus package
On December 8, Hong Kong Chief Executive Donald Tsang announced that the Hong Kong Special Administrative Region Government would provide up to US$12.82 billion in loan guarantees for enterprises and would make available more than 60,000 employment opportunities next year as part of the government’s efforts to lead Hong Kong out of the economic downturn.

Speaking after the second meeting of the Task Force on Economic Challenges (TFEC), the Chief Executive noted that the financial tsunami from the U.S. had triggered a global economic recession, and it seemed inevitable that the local economy would go into negative growth in 2009.

Hong Kong and Peru sign trade and investment agreement
On November 20, Hong Kong Secretary for Commerce and Economic Development Rita Lau signed a Co-operation Arrangement on Trade and Investment Facilitation with the Minister of Foreign Trade and Tourism of the Government of the Republic of Peru Mercedes Araoz Fernandez.

The signing ceremony took place at the margins of the Asia Pacific Economic Cooperation’s Ministerial Meeting in Lima, Peru.