Hong Kong's 2015 full-year growth projected to slow to 2.3%

With risk tilted towards the downside.

Hong Kong’s real gross domestic product (GDP) growth slowed to 2.3% in the third quarter, down compared with 2.8% in the second quarter but above Hang Seng Bank's forecast and market expectations of 1.9% and 2.0% respectively.

According to a research note from Hang Seng Bank, on a seasonally adjusted quarter-on-quarter basis, real GDP growth accelerated to 0.9% in the third quarter from 0.4% in the second quarter.

Meanwhile, regarding economic outlook, the report said that the notable economic headwinds originating from the US and the Mainland will likely keep business investment cautious and external demand weak for some time.

Here's more from Hang Seng Bank:

That said, domestic demand will likely continue to be a good driver of growth, supported by private consumption expenditure growth amid stable labour market conditions and weak inflation.

With the impact of international economic headwinds on external demand cutting into the positive effects of resilient domestic demand, we expect Hong Kong’s economy to record 2015 full-year growth of 2.3%, with risk tilted towards the downside.

In 2016, Hong Kong’s economy is expected to expand at a broadly similar pace to this year, with cyclical headwinds likely to persist into early next year.