Hong Kong.

The article focuses on the political and economic conditions in Hong Kong, China. It is looking likely that Hong Kong's thief executive, Tung Chee-hwa, will retire early some time in 2005. Proposals for constitutional reform are due to be published in 2005, although how this will be affected by Tung's exit remains uncertain. However, a more competent head of government may be better placed to reach a middle-ground consensus with the democratic parties. The economic recovery is continuing, but gross domestic product growth will slow to 4.6% this year from 7.6% in 2004 in line with trends in the U.S. and China.