Policy address no surprise; recession seen in 2h01: Goldman Sachs

Goldman Sachs said the short-term fiscal stimulus contained in Tung Chee-hwa's annual policy address is modest and will unlikely have a meterial impact on GDP and the property sector. The house maintained its cautious macroeconomic outlook, and aniticipate the economy will slide into recession in second half this year. Growth will remain negative in the first quarter 2002 and the unemployment rate will climb to 6.0 percent by mid-2002 (currently 4.9 percent), it reckoned.

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