ABSTRACT
The economy of the Hong Kong Special Administrative Region was strong in the first half of 1997. All economic activities in the SAR, particularly those in investment and consumption, were seriously affected by the sharp decline in securities and real estate prices, high interest rates, and the worsening unemployment rate. The chain reaction from the Asian financial crisis has already spread to the advanced economic systems outside the region and some emerging markets. In exports, due to the effects of the Asian financial crisis, exports to East Asia declined noticeably. The industries with a noticeable rise in unemployment are those more seriously hurt by the Asian financial crisis, especially retailers, real estate businesses, restaurants, and hotels. In June the SAR Government established a special working group on employment with the financial secretary as the chairperson. The team included both employer and employee members, scholars, and government officials.
