The government recently announced that the full-year economic growth forecast has been revised to 2.5 percent, down from the previous estimated range of 2.5 to 3.5 percent. This adjustment comes after real GDP in the third quarter only grew by 1.8 percent year-on-year, which is slower than the 3.2 percent growth seen in the previous quarter.
During a press conference, government economist Adolph Leung explained that economic growth has faced challenges due to issues in the external environment. He mentioned that increased global economic uncertainties and escalating trade conflicts could impact the performance of goods exports from Hong Kong.
Despite these challenges, Leung remains optimistic about the economy’s future prospects. He highlighted that measures introduced by both the central and SAR governments to boost market sentiment are expected to help the economy gain momentum. Leung stated, “While the external environment has become more challenging recently, we anticipate that the Hong Kong economy will continue to grow for the remainder of the year.”
When asked about US President-elect Donald Trump’s proposal to impose tariffs of up to 60 percent on goods imported from China, Leung expressed concerns about the potential negative effects. He noted that such actions would not only impact China’s exports to the US but also affect Hong Kong’s exports of mainland origin to the US. Additionally, Leung highlighted that the trade and economic policies implemented by the US could influence the outlook for interest rates.
In light of these economic developments, it is essential for Hong Kong to closely monitor the evolving global trade landscape and adapt strategies to navigate through potential challenges. By staying informed and agile in response to external factors, the city can position itself to mitigate risks and capitalize on opportunities for sustainable economic growth.
