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.