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Hong Kong's economy could slow in second half of the year, financial secretary says

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Financial Secretary John Tsang warns about a slowing economy. Photo: SCMP Pictures

Hong Kong's economic growth could slow in the second half of the year in the face of the "inevitable" impact of uncertainties in the global economy, Financial Secretary John Tsang Chun-wah said.

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But Tsang also offered reassurance that the city would be able to manage any slowdown given its sound fiscal situation.

In an article posted on his official blog on Sunday, Tsang said he saw signs of capital outflow from emerging markets which would affect their exchange rates and stock markets.

He cited the Brazilian real and Malaysian ringgit, which have fallen four per cent and almost 10 per cent respectively since the beginning of this month. The stock market in Indonesia is down 15 per cent since the start of the year and share prices in Thailand eight per cent, he said.

"As a small and export-oriented economy, Hong Kong will inevitably continue to be affected by various external uncertainties in the second half of the year," Tsang said.

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"Hong Kong will continue to face volatilities in the financial markets, weak external trade and the slowdown of the tourism sector.

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