Wainwright Marks Management - Hong Kong Economic Growth Disappoints in Q1
May 06, 2019 Business News(PRLEAP.COM) Wainwright Marks Management analysts say Hong Kong's economy grew at its slowest pace since the financial crisis ten years ago, citing the US China trade war as the primary reason for the weaker economic activity.
In the first quarter of this year, Hong Kong's GDP expanded by 0.5 percent, 0.7 percent less than the same time a year ago. This was significantly less than economists at Wainwright Marks Management had predicted.
The latest figures highlight the effect the trade war between China and the US has had on China's neighboring economies as the regions which heavily depend on trade face falling exports and dwindling business sentiment.
But analysts at Wainwright Marks Management say recent data indicating that China's economy may be stabilizing could have a positive knock on effect on Hong Kong.
Hong Kong's total export of products declined during the period from January to March and Hong Kong's economic growth is expected to slow to between 2 and 3 percent this year.
Falling house prices have added to the challenges facing Hong Kong's economy. Last August saw Hong Kong property prices falling by 10 percent and Wainwright Marks Management analysts say prices are only now showing signs of recovery.
Although both the stock and property markets are beginning to recover, consumer spending has lukewarm as widespread caution about global risks to the economy persists. Retail sales in recent months have been weighed on by weaker domestic demand and only slightly helped by a pick-up in inbound tourism.