UBS hiked its forecast about Hong Kong’s economic growth to 2.2 percent this year, citing eased Sino-US trade tensions and the reinvigorated financial market.
The latest projection is 1.2 percentage points higher than the previous target of 1 percent and 0.2 percentage points above the current market consensus of 2 percent, said William Deng Weishen, senior Asia and China economist at UBS Investment Bank.
This comes after Hong Kong’s first-quarter gross domestic product growth beat market estimates and the reduced trade uncertainties following the 90-day pause on the US-China tariff war.
UBS also highlighted the extended momentum in the financial market in the current quarter and the recovering daily visitor arrivals during the May Day golden week holiday.
However, UBS warns that its projection would be revised downward if a significant reescalation of the tariff war occurs. The key watch points ahead would be further trade talks between the US and mainland China.
STAFF REPORTER
