RTTNews - Monday, Hong Kong's Financial Secretary John Tsang said the economy has stabilized somewhat and contraction in the second quarter will be smaller than in the first quarter due to the improvement in exports and domestic demand. The economy contracted 7.8% year-on-year in the first quarter, which was the biggest fall since Asian financial crisis in 1998.

Although the economy has stabilized, the economic outlook remain uncertain, Tsang told legislators. He said the unemployment rate in the short term would continue to face upward pressure.

The government has announced relief measures worth 87.6 billion yuan since last year. Tsang noted that these measures had a positive effect on the domestic economy.

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