THE Hong Kong Government maintained its forecast for GDP for growth this year at between two and three per cent, as the city grapples with the fallout from the trade war between the US and China.
In a release revising up first quarter GDP growth to 0.6 per cent from a year ago, the government said the outlook is currently subject to a "high level of uncertainty." Economists surveyed by Bloomberg see the expansion coming in at 2.3 per cent this year, down from three per cent in 2018.
The forecast matches the outlook made by Financial Secretary Paul Chan in February during his annual budget Hong Kong's currency is once again approaching the weak end of its trading band against the US dollar amid an escalation of tensions between China and the US.
Hong Kong's record-breaking property market is set to accelerate again, after a brief decline at the end of last year.
"If US-China trade tensions do not show any easing in the near term, they would pose a drag on the global economy, and the Hong Kong economy would inevitably face greater downward pressure," the government said.