Hong Kong's economy is likely to contract as much as 3% this year, after a 2.5% drop in the last quarter of 2008, Financial Secretary John Tsang said. Collapsing property prices, slowing exports and rising unemployment are expected, he said. "This once-in-a-century financial turmoil has spread from the financial markets to the real economy, leading to a synchronized global recession," Tsang said. "Being a small open economy, Hong Kong will inevitably be hit."

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