The economy of Hong Kong is expected to grow by 2.5% in 2016, largely unchanged from this year’s performance.
Sluggish overseas economies, a strong U.S. dollar, and the slowdown in the tourism market exerted negative influences on Hong Kong’s economy this year, according to a new report issued by Bank of China (BOC) (Hong Kong) Limited.
However, the region’s internal demand and job market remained stable, added BOC, according to a news report by Xinhua News. For this year, economic growth is estimated to be at 2.5% with unemployment rate staying at a low level of 3.3%.
The bank is pessimistic about Hong Kong’s external trade and tourism industry next year. With such weak overseas market demand, domestic market demand will become the main driver of economic growth in 2016, it said.
BOC said that global economic outlook could be slightly more optimistic next year, but with interest rates on the rise in the United States and a quick turnaround in the tourism sector unlikely to materialize, export and tourism revenues will not be much better in the short term.
For 2016, the economic growth and unemployment rates of Hong Kong are expected to remain largely the same as this year, at 2.5% and 3.3%, respectively. The inflation rate is expected to see a year-on-year rise of 2.2%.
Among the different sectors, growth in the financial industry is seen to remain robust next year.
The Institute of Global Economics and Finance at The Chinese University of Hong Kong said a strong financial sector would take in workforce from other sectors like retail, keeping Hong Kong’s economy healthy.
The BOC (Hong Kong) report also predicted that the Chinese mainland’s economic growth in 2016 will be at 6.8%.
Photo: Roy Niekerk
