"Hong Kong exports will remain gloomy for an extended period," said Mr Tsang. "Last year, we launched a series of fiscal measures to boost domestic consumption, which have helped stabilise the economy and kept the unemployment rate at a low level of 3.2 per cent. However, we note the growth in the retail sector slowed to 1.3 per cent year on year, net of the price adjustment in July."
Mr Tsang warned that the public should not overlook the increasing risk of unemployment in the coming quarters.
The European Central Bank indicated last week it will purchase an unlimited amount of sovereign bonds of the Eurozone states, he noted, adding that the German constitutional court has ruled that Germany`s fund injection into the European Stability Mechanism is constitutional.
"The US Federal Reserve announced this morning another round of quantitative easing, which is more aggressive than expected," he said in communique from the Hong Kong Government Information Service.
"The recovery of the US economy is still slow. The unemployment rate remains high. The `fiscal cliff` also adds to the uncertainty. I am afraid I cannot say the global economic outlook has turned optimistic," Mr Tsang said.