Cramped housing in Hong Kong
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Hong Kong society divided

Hong Kong's financial secretary unveiled the city's annual budget Wednesday.

Hong Kong's economy expanded by 1.4% in 2012 and is predicted to grow between 1.5 and 3.5% this year.

However there are a number of clouds on the horizon with the housing market seen as a growing problem for the government because of the widening gap between Hong Kong's rich and poor.

Jennifer Pak reports.