Hong Kong Poised to Report Weakest Economic Growth Since 2009
Hong Kong is poised to announce its weakest economic growth since the global financial crisis even as property-price gains fuel asset-bubble risks.
Gross domestic product may have increased about 1 percent last year, K.C. Chan, the financial services secretary, said at a function in the city today, according to a government transcript. That would compare with 4.9 percent in 2011.
Officials are balancing the need to stoke growth with efforts to cool a housing market that the International Monetary Fund said last year is at risk of an abrupt correction. The government is set to announce fourth-quarter GDP figures and this year’s budget on Feb. 27 amid signs of improvement in the global economy.
“I believe this year’s economy will be better than last year’s, but it is full of challenges,” Chan told reporters after the event to mark the first business day after a Chinese New Year holiday.
Hong Kong is among economies with pegged currencies that need to be on alert for dangers such as asset bubbles, Jan Hatzius, chief economist at Goldman Sachs Group Inc., said at a briefing in the city on Feb. 5.
To contact the reporter on this story: Simon Lee in Hong Kong at firstname.lastname@example.org