HK to trim growth target, says Chan

Hong Kong's economy may grow less than expected this year amid headwinds, Financial Secretary Paul Chan Mo-po warned, following a disappointing third-quarter growth figure.

The revised full-year gross domestic product projection to be released later this week will be below a growth range of 3.5-5.5 percent estimated at the beginning of the year, Chan said in his blog yesterday.

The financial hub posted a 4.1 percent rise in third-quarter GDP, far worse than the 5.2 percent increase predicted by economists, though it was better than the 1.5 percent hike in the second quarter.

Officials have already narrowed their growth forecast for the full year to 4 to 5 percent while economists see an expansion of around 4 percent this year.

Factors such as the overall weak external sentiment, persistently high interest rates and the performance of the financial market have, to a certain extent, limited the rebound in local consumption, Chan said.

For the fourth quarter, Chan expects inbound tourism and private consumption to remain the driving forces for growth. Improvement in household income, coupled with various government support measures, will also bring certain support to local consumption, the secretary wrote.