, Hong Kong

HK economy forecast 5% increase

Inflation will somewhat erode real income at least with respect to most local Hong Kong consumers.

DBS said that enormous purchasing power from mainland Chinese should make up the slack inflation has caused.

The ongoing strength of the CNY also incentivizes mainlanders to spend more offshore. Nowadays, tourists from mainland represent more than 60% of total tourists travelling to Hong Kong and it still is a fast growing segment.

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