Amid a synchronised expansion of the global economy, the
Hong Kong economy grew notably by 3.8% in 2017, the fastest
pace in seven years. The labour market remained in a state of
full employment, with the seasonally adjusted unemployment rate
falling to a near-20-year low of 2.9% in the fourth quarter of
2017. Inflation pressure remained well contained, with headline
inflation moderating to 1.5% last year.
The Linked Exchange Rate System (LERS) continued to serve as
an anchor for Hong Kong's monetary and financial stability.
While the Hong Kong dollar eased gradually against the US
dollar during the year amid carry trade activities, it