Hong Kong’s economy is close to its maximum level
Hong Kong’s economy is forecast to grow at its quickest rate ever this year, with inflationary pressures likely to ease.
GDP growth in Hong Kong is expected to be 6.4 percent this year, near to the top end of the previous range of 5.5 percent to 6.5 percent.
Prospects for economic recovery amid growing obstacles
This year’s core inflation forecast has been lowered from 1% to 0.7 percent. The local government’s third-quarter and annual GDP growth predictions remained unchanged at 0.1 percent and 5.4 percent, respectively.
The administration’s Covid-zero policy of reopening the mainland border while barring most other visits is eroding the country’s economic prospects.
Because of its Covid zero status, Hong Kong’s growth has slowed, prompting questions about the city’s future as a global financial centre.
Foreign business organisations, particularly European and American chambers of commerce, are growing more frustrated by the lack of progress in modifying quarantine restrictions that severely restrict foreign travel.
Hong Kong’s top objective, according to Chief Executive Officer Carrie Lam, is to re-establish ties with mainland China.