ADB dials down Hong Kong growth forecast to 2pc

Asian Development Bank slashed its forecast for Hong Kong's economic growth this year by 0.3 percentage points to 2 percent, citing global trade uncertainties despite ongoing talks between United States and other economies.

However, the Hong Kong government's latest real gross domestic product growth forecast for 2025 was maintained at 2 to 3 percent, the same as that announced in the budget.

In addition, Citigroup predicts that Hong Kong's real GDP will grow 2.2 percent, while UBS recently raised its forecast from 1 to 2.2 percent due to mitigated Sino-US tariff risks.

In the first quarter of this year, Hong Kong's economy grew by 3.1 percent above market estimates, expanding for a ninth quarter.

But ADB maintained its forecast for China at 4.7 percent this year.

In addition to tariff risks, other challenges included geographic impacts on the global supply chain, as well as rising energy prices. The mainland real estate market remained weaker than estimated, ADB said.

HELEN ZHONG