HSBC: Hong Kong's economy expected to fall 0.7% this year

Financial news

Written by: Lin Leqian

2020-01-16 15:26

HSBC lowered its Hong Kong economic forecast for this year, from a growth of 1.5% to a fall of 0.7%. Fan Limin, co-head of HSBC Economic Research Asia Pacific, explained that although Hong Kong ’s tourism retail industry has suffered a setback, recent government fiscal spending has stimulated consumption, coupled with two consecutive economic losses in the economy. The contraction is expected to return to positive growth in the third quarter of this year, and the economy will grow by 2.8% in 2021.

Recently, the interest rate of Hong Kong dollar has been rising. Fan Limin believes that the IPO activity will tighten the liquidity of the Hong Kong dollar. Hong Kong interest rates will return to normal in the future.

In terms of the property market, Lin Chuanying, head of the Asia-Pacific region of HSBC Securities Strategy, believes that the decline in real estate-related shares has reflected market conditions, the downturn in the property market last year, and the low interest rate environment has supported property prices. The property market is expected to fall 5 to 10% this year. Will fall further.

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