Hong Kong's macroeconomic indicators projected to dwindle

Due to China slowdown, among others.

It has been noted that Hong Kong’s macroeconomic indicators, including growth, fiscal metrics and the balance of payments, will likely weaken.

According to a research note from Moody's Investors Service, this is due to the slowdown in China and global financial uncertainty.

But, given their strong starting point, the report expects them to remain robust relative to Aa-rated sovereigns.

Here's more from Moody's Investors Service:

The negative spillovers of China’s slowdown on Hong Kong’s economy are already tangible. In January to November 2015, the value of Hong Kong’s global exports of goods was 1.9% lower than in the same period in 2014, pointing to the first annual fall in exports since the global financial crisis in 2009.

In addition, slower demand from China has hit exports of services. For instance, tourist arrivals from the mainland, which make up around three quarters of the total, were 15.5% lower in November 2015 than one year earlier.

More generally, a slowdown in global trade, which we do not expect to reverse in the near term, will hurt Hong Kong’s export-oriented businesses. Together with weakening domestic demand as interest rates rise and the property sector cools, we forecast that Hong Kong’s GDP growth will slow to 1.7% in 2016, from 2.5% in 2015.