ADB predicts Hong Kong's economy to grow 3.2 pct in 2018

Source: Xinhua | 2018-04-12

The economy of China's Hong Kong Special Administrative Region will grow 3.2 percent this year, the Asian Development Bank (ADB) forecast on Wednesday.

Though the forecast is slightly lower than the actual growth at 3.8 percent in 2017, but still higher than the actual growth at 2.1 percent in 2016, ADB's chief economist Yasuyuki Sawada said here while delivering the bank's annual publication Asian Development Outlook.

The economic growth rate of Hong Kong will be 3 percent in 2019, according to the report.

Hong Kong's growth accelerated in 2017, propelled by a strong external environment and solid domestic demand, and a tight labor market and recovering inbound tourism should sustain robust growth this year and next, though some moderation is expected, the chief economist said.

Meanwhile, integrating the Guangdong-Hong Kong-Macao Greater Bay Area poses vast opportunities in the years ahead, according to the report.

Rather than facing competition from growing service industries in other Greater Bay Area cities, Hong Kong stands to benefit from easier access to their vast labor resources, Sawada said.

Increased mobility under a joint Greater Bay Area regulatory framework will address labor market mismatches, helping to alleviate shortages in Hong Kong in industries such as construction and tourism, and boosting employment opportunities created by Shenzhen firms expanding into Hong Kong, he said.