Hong Kong may be on the road to economic recovery according to its Financial Secretary who believes the fall in the rate of its export declines during the second quarter is a positive sign.

John Tsang, Hong Kong’s Finance Secretary told legislators on Monday that the country’s fall in exports had eased up in the months of April and May thus indicating a possible return to economic growth, at least on a quarter-on-quarter basis. Previously Tsang had forecast that Hong Kong’s economy may suffer a 6.5% contraction in 2009 as the worst global financial crisis since the Second World War gripped major economies around the world.

On Monday, 10:02 a.m local time the Hang Seng index in Hong Kong fell 1.4% after gaining 60% from an almost four-month low on March 9. However Tsang clarified that unemployment would continue to rise from its present rate of 5.3% which is the highest in last three years.

In May this year, the government introduced a new round of relief package in an attempt to boost economic growth. Among the measures included were higher salary-tax cuts, rent subsidies for public-housing occupants as well wider waivers in property rates.