IMF supports Hk dollar peg

IMF supports Hk dollar peg

HONG KONG (AFP): The International Monetary Fund (IMF) has
endorsed Hong Kong's linked exchange rate and supported the
government's economic policy framework, the government said
Wednesday.

In a statement issued following annual consultations with
China, the IMF backed continuation of the Hong Kong peg to the
U.S. dollar.

The IMF predicted a 5.0 percent contraction in gross domestic
product (GDP) for Hong Kong this year and continued weak economic
activity in the first half 1999, with recovery beginning in the
second half.

The government welcomed the IMF's "endorsement of our policy
framework and their continuous support for the linked exchange
rate system," Financial Secretary Donald Tsang said.