Hong Kong's economy still faces many uncertainties, with only certain sectors such as wealth management and new stock listings showing signs of improvement, according to economist Simon Lee Siu-po.
His comments followed Financial Secretary Paul Chan Mo-po's optimistic forecast of a 3.2 percent economic growth for this year and expectations that the economy can maintain the momentum next year. In contrast, former Financial Secretary John Tsang Chun-wah warned that challenges will persist due to ongoing geopolitical tensions.
Speaking on a radio program on Monday, Lee noted that Chan referenced relatively positive data, including rising visitor numbers and gains in the stock market. Meanwhile, Tsang provided a more comprehensive perspective.
Lee avoids labeling the economic situation as purely "optimistic" or "pessimistic", acknowledging the numerous existing uncertainties. He pointed out that while some sectors may show recovery, the general public is hoping for a more robust economic environment in the short and medium term, stating that the government's optimistic statements are insufficient to address immediate financial concerns.
He noted improvements in sectors such as wealth management and new stock listings, predicting modest single-digit growth in the real estate market for the coming year. However, the retail and catering industries continue to struggle.
With an inflation rate of only 1.2 percent, there is a clear indication of low economic momentum, he added.
Additionally, he raised concerns about changing spending habits among mainland tourists. Despite increased travel quotas for Southbound Travel for Guangdong Vehicles, many visitors may opt not to stay overnight in Hong Kong or choose alternative activities like camping, which would further depress consumer spending.
