HK’s Economy To Stabilise At Low Level

Economic Research	20 September 2016
Hong Kong
Economic Outlook
HK’s Economy To Stabilise At Low Level HK's economy has rebounded from a 4-year-low in 1Q16 to 1.7% YoY in 2Q16, driven by improved demand from Asian countries and pick-up of investment. But private spending stayed at low levels, despite a tight labour market. Looking ahead, there will be increasing chance for HK’s economy to stabilise in the coming months, amid low base effect and stabilising economic conditions globally. However, the pace of economic expansion will be limited, as uncertainties still remain, especially given rising probability for the US to restart its rate hike process from end-2016 or early-2017. We hold our forecast unchanged that HK’s GDP will slow down to 1.4% in 2016 from 2.4% in 2015, before moving up modestly to 1.9% in 2017. Economist:  Zhang Fan| +8621 6288 9611 ext 105
To access our recent reports please click on the links below: 29 Jun: More Downside Risks To Growth In HK 09 Mar: Winter Not Over Yet 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