Economists cut their forecasts for Hong Kong’s economic growth, raising the possibility the government could miss its goal for the year as the post-pandemic recovery runs out of steam.
That’s according to economists surveyed by Bloomberg, who project the Asian financial hub’s gross domestic product will expand by 4% this year compared to 2022, less than an earlier median estimate of 4.6%.
Even 4% may be in jeopardy if the outlook worsens further. Ten of the 29 economists surveyed by Bloomberg expect GDP to expand less than that, implying the city may not meet government estimates at all. The economy is also facing challenges from China’s slowing momentum, soft global demand and the potential for local spending habits to taper off.
That’s translated into weak consumer spending, with the value of retail sales in June hitting the lowest for any June since 2011, after stripping out 2019-2022 figures.