Economists cut 2023 HK growth forecasts to 2.7%

Economists have downgraded their growth forecast for Hong Kong next year. Hong Kong’s economy is projected to grow 2.7% in 2023, down from an estimate in August of 3.5% growth. The new forecast is about in line with the Hong Kong government’s revised estimate issued last week when officials said they expect a 3.2% contraction from a year earlier. The downgrades reflect the numerous headwinds Hong Kong has been grappling with, including rising global and local interest rates, weakened trade, the territory’s slow emergence from years of isolation due to the COVID-19 pandemic, and China’s precarious economic situation. The territory last month reported that GDP dropped in Q3 at a surprising 4.5%, well below expectations.