The economic environment in Hong Kong has improved markedly after the severe acute respiratory syndrome crisis and real GDP growth will grow by 2.2 percent this year, said the APEC Study Center of the University of Hong Kong yesterday.

　　The center forecast that the real Gross Domestic Product in the third quarter of 2003 will increase by 2.3 percent and by 2.6 percent in the fourth quarter, turning around from a 0.5 percent contraction in the second quarter of the year.

　　It said there were positive developments which served to bring Hong Kong out of its latest economic recession experienced in the first half of this year.

　　They included the rapid rebound in visitor arrivals, the signing of the Closer Economic Partnership Arrangement and greater capital inflow.

　　The center's director, professor Richard Wong, said the recovery which started in June could be expected to continue.

　　The current economic policy, with its primary focus of stimulating economic growth, is conducive to the recovery process, he said.

　　However, Wong noted that the short-term outlook is still clouded by the likelihood of a re-emergence of SARS in the coming months.