Hong Kong Cuts 2014 Growth Forecast After Unexpected Contraction

Hong Kong cut its economic growth forecast for the year after an unexpected contraction in the second quarter as a slowdown in China crimped the purchases of luxury items and weighed on local sentiment.

The economy is forecast to expand 2 percent to 3 percent, the government said in a statement yesterday, compared with its February prediction of 3 percent to 4 percent. Gross domestic product fell 0.1 percent in the second quarter from the prior three months, missing the median estimate of 10 analysts surveyed by Bloomberg News for 0.4 percent growth.