HONG KONG, July 27 (Xinhua) -- Hong Kong's GDP is expected to grow 6.5 percent to 7 percent in 2006, the Federation of Hong Kong Industries (FHKI) predicted Thursday.

FHKI said in its forecast that Hong Kong's GDP will increase by6.5-7.0 percent in real terms in 2006, while total exports will see double-digit growth at around 10 percent.

FHKI chairman Kenneth Ting said, "Hong Kong's economy performed well in the first half of this year. Domestic consumption, job vacancies and the income of the working population remained on the up, and total exports continued to grow."

He said Hong Kong is expected to see good performance in trade and other economic domains in the ensuing quarters. He predicted that the upward trend in export of services will continue this year, underpinned by vibrant offshore trade and rising inbound tourists.

While the FHKI was optimistic about the Hong Kong economy in the second half of this year, Ting urged the government to continue to improve Hong Kong's business environment and to give stronger support for local companies in moving up the value-added chain, thereby enhancing their competitiveness. Enditem