, Hong Kong
304 views
Source: Pexels

Hong Kong may see negative economic growth in 2022

This is due to the rising cost of capital and tightening monetary conditions amongst others. 

Hong Kong may see negative economic growth in 2022 amidst continuing economic challenges, Financial Secretary Paul Chan said. 

Chan cited the rising cost of capital, tightening monetary conditions, and worsening external environment. 

Hong Kong’s GDP decreased by 1.3% year-on-year in the second quarter of 2022, after contracting 3.9% in the previous quarter. 

Despite this, Chan said the banking and financial system of the city remains “highly robust and enviably stable.”

“As bankers, you will certainly laugh off rumours surrounding the stability of the Hong Kong dollar exchange rate. Carry trades arising from interest rate differentials are within the design and expectations of the Linked Exchange Rate System (LERS),” he said. 

“It is indeed nothing new. We all experienced a similar situation during the last interest rate normalisation cycle in the US from 2015 to 2018. That caused no concern on our LERS at all.” 

Read more: GDP dips 1.4% YoY in Q2: advance estimates

Chan also cited Hong Kong’s connectivity with Mainland China which is vital to its competitiveness. 

“Since this new-term Government has assumed office, our goal is to create maximum space for activities to resume and to re-establish business connections, without compromising defences against the pandemic and the health of our residents,” Chan said.

 

Follow the link for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!