Hong Kong Economic Forecast

Hong Kong Economic Outlook

February 20, 2018

The economy is likely to have posted another strong result in the final quarter of 2017. Despite moderating slightly in December, retail sales growth accelerated in Q4 from Q3 mainly due to a recovery in tourist arrivals from mainland China. Moreover, dynamics in the job market remain robust, with the unemployment rate in December hitting the lowest level in over 20 years. A booming global economy is translating into sustained growth in exports. Although housing prices continue to hit all-time highs, some warning signs have started to emerge: Chinese developers, which represented around 50% of the total land buyers in 2016, are pulling back from their rapid expansion in the island due to Hong Kong’s longer development cycle and Chinese authorities’ efforts to reduce capital outflows. Financial Secretary Paul Chan will deliver the budget for this year on February 28. The government is likely to unveil a more expansionary budget, given the expected massive fiscal surplus the island achieved in 2017.

Hong Kong Economic Growth

Although growth will decelerate this year, the economy should expand at a robust rate on the back of strong retail sales, healthy dynamics in the financial sector and a resilient property market. FocusEconomics panelists expect GDP to grow 2.8% in 2018, which is unchanged from last month’s forecast, before ticking down to 2.6% in 2019.

Sample Report

5 years of Hong Kong economic forecasts for more than 30 economic indicators.


Sample Report

Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.


Hong Kong Facts

Bond Yield1.953.38 %Mar 15
Exchange Rate7.84-0.11 %Mar 15
Stock Market31,541-1.92 %Mar 15

Start Your Free Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Hong Kong Economic News