Hong Kong economic growth set to accelerate

Hong Kong’s economy is forecast to grow by 3.5 to 4.3 per cent in real terms this year, according to estimates by researchers from the University of Hong Kong on Thursday.

The estimates were made by the university’s Hong Kong Institute of Economics and Business Strategy in its macroeconomic forecast.

The researchers said Hong Kong’s growth was expected to accelerate from the fourth quarter of this year as the United States economy gradually recovered, the worst time of the euro debt crisis was over and China’s economy was expected to rebound.

For the first quarter of next year, the city’s gross domestic product was forecast to expand by 2.9 per cent year-on-year.

Headline inflation is expected to ease to 3.2 per cent in the quarter, from 3.7 per cent in the fourth quarter, as food prices eased and asset prices became stable.

However, the researchers said uncertainties in the global economy might still overshadow the job market. They forecast the unemployment rate would increase to 3.5 per cent in the first quarter, from 3.4 per cent.