Hong Kong economy may expand by 3.5% in 2023: BEA

The economy is expected to contract by around 3% in 2022. 

Hong Kong's economy is expected to grow by 3.5% in 2023, after an estimated contraction this year, the Bank of East Asia reported. 

The city’s economy shrunk by 3.3% year-on-year in the first three quarters of the year, largely due to the persisting impact of the pandemic, rapidly tightening global monetary condition, rising geopolitical tensions, and weakening global demand.

Read more: GDP dips 1.4% YoY in Q2: advance estimates 

In this light, BEA estimated Hong Kong’s economy will contract by around 3%. 

The bank forecast that in 2023, unemployment rate is expected to decline to an average of 3.2% in 2023.

“Despite elevating global inflation, domestic cost pressure will remain modest, with consumer price inflation expected to be 1.9% in both 2022 and 2023.,” the report read in part.

“In the face of uncertainties such as the pandemic, geopolitical tensions, and changing monetary policies, it is expected that Hong Kong’s residential property prices will drop by around 11% and 5% in 2022 and 2023 respectively.”