Hong Kong GDP predicted to edge up by 1-3% this year

Thanks to Budget 2015's "sweeteners".

The Financial Secretary recently announced the 2015/16 Government Budget, and this year’s Budget provided more sweeteners with total relief measures rising from HK$20bn to HK$34bn, equal to a fiscal stimulus of 1ppt to Hong Kong’s GDP.

According to a research note from Barclays, further, one to three percent GDP growth has been forecast based on this development.

Meanwhile, on the property front, although the Government noted the double-digit increase in small/medium flat prices, there were no new cooling measures as expected.

The report also said there were generally no surprises in the Budget but there was one potential negative.

Further, in emphasizing the need to broaden its tax base, the Government brought up the 2006 public consultation on the introduction of a GST.