Hong Kong has joined other Asian nations in forecasting respectable expansion for its economy this year.

Delivering his annual budget speech yesterday, Financial Secretary, John Tsang, said he expected Hong Kong's GDP to grow by between 4% and 5% in 2010.

Moreover, Tsang said that the territory's GDP had shrunk by only 2.7% in 2009 - much less than had been expected.

Hong Kong emerged from recession in the second quarter of last year and posted a 2.3% quarter-on quarter growth in the final three months of 2009.

Meanwhile, neighbours China and Taiwan have reported Q4 GDP figures of 10.7% and 9.2% respectively confirming that Asia is leading the recovery drive.