Hong Kong’s economy grows at slowest pace in a decade amid trade war
Photo: Reuters/Carlos BarriaAuthorities in Hong Kong will release statistics on its first quarter of economic growth today.
Hit by a slowdown in exports and investment, an advanced government estimate indicated that Hong Kong’s economy grew at just 0.5%, its slowest annual pace in nearly 10 years for a financial quarter. The US-China trade war has been widely cited as the cause of slowdown not only in Hong Kong but in mainland China as well..
The slowdown seen in Hong Kong may be an indicator of a greater slowdown in mainland China. Hong Kong is an entry and exit point for investment into and out of the mainland. The slowdown may show that current relatively restrained efforts by Beijing to stimulate its economy may have to be ramped up in the foreseeable future. With this relationship of economic dependency in mind, the Hong Kong slowdown could also justify further involvement of Beijing in the city’s economic affairs. Chinese investors from the mainland already find appeal in the city’s low corporate tax rate, shared culture and financial access to the rest of the world.
Wake up smarter with an assessment of the stories that will make headlines in the next 24 hours. Download The Daily Brief.
