Hong Kong's economy is projected to grow 4.1 percent in 2026, up 0.4 percentage points from the previous forecast, according to the University of Hong Kong, reflecting better-than-expected foreign trade growth in the first half.
The APEC Studies Programme of the Hong Kong Institute of Economics and Business Strategy at the HKU expects the city’s gross domestic product growth to slow to 3.7 percent in the third quarter from 4.3 percent in the June quarter, dragged by weaker consumer sentiment.
Private consumption expenditure is estimated at 2 percent in the three months, down from 2.8 percent in the prior quarter, it said in a report on Thursday.
Visitor arrivals continued to rise in the quarter, boosting tourism-related service exports, while exports of goods are projected to remain stable at 28.9 percent, it said.
Gross fixed capital formation, on the other hand, is expected to accelerate to 10 percent from 4.4 percent.
The SAR’s real GDP is expected to grow by 2.8 percent in the fourth quarter, partly due to a higher base of comparison, the report said.
Clouded by trade protectionism, tensions in the Middle East and uncertain interest rates, the momentum of external trade is expected to ease toward the end of the year, it said, adding that the unemployment rate is expected to stay at 3.8 percent this quarter.
