Hong Kong finance chief Paul Chan doubles down on 3 per cent growth projection despite dark clouds in US-China trade war
- He says estimate was made when both superpowers were expected to reach a deal, but even if the mood has changed, it is still ‘not appropriate’ to adjust figure
Hong Kong officials will maintain their projection for the city’s annual economic growth at about 3 per cent, despite increasing uncertainties caused by the US-China trade war, the city’s finance chief said on Saturday.
Financial Secretary Paul Chan Mo-po said the projection was made when China and the United States were widely expected to reach a deal. But he added that the prediction of an annual economic growth of 2 to 3 per cent would stay for now even if the trade war situation had worsened.
“There are still many uncertainties about the trade war. It’s not appropriate for us to adjust the projection significantly or the market may have misunderstandings,” Chan said on a radio programme.
It’s not appropriate for us to adjust the projection significantly or the market may have misunderstandings
Hong Kong announced its revised first-quarter GDP growth at 0.6 per cent on Friday – the slowest quarterly increase in a decade.
The city, a free port, has been caught in the crossfire of the trade war, which has harmed its external trade, retail sales, financial sentiment and the economy in general.
Chan said the predicted annual gross domestic growth was based on the assumption that the economy would pick up in the second half of the year with a positive view that a trade deal would form.
