RHB | Hong Kong | Winter Not Over Yet

Economic Research	9 March 2016
Hong Kong
Economic Outlook
Winter Not Over Yet Difficult times ahead. 2016 will be a tough year for Hong Kong. The economy will face challenges from global economic slowdown, rising borrowing cost, weakening property market and declining consumption from fewer visitors. Stronger HK dollar will drive more tourists to other places, and will also potentially undermine competitiveness of HK’s products. Rising volatilities in stock market will be another threat for HK’s financial industries. Meanwhile, uncertainty will also come from political unrest, given intensified political disputes in recent quarters. As such, we believe HK’s economy will face rising downside pressure in the near them. Thus, we cut HK’s GDP growth forecast to 1.7% YoY in 2016 from previous forecast of 2.0% YoY, vs 2.4% YoY in 2015. Economist:  Zhang Fan| +8621 6288 9611 ext 105
To access our recent reports please click on the links below: 29 Dec: A Rough Ride 14 Dec: Pause For Breath 14 Dec: No Easy Way Ahead 09 Dec: Better Inflation Numbers, No Change Of Easing Stance 08 Dec: Mounting Uncertainty For Export Recovery 01Dec: Weakening Industrial Sectors