StanChart projects Hong Kong Q3 GDP growth at 3.7% on-year

This compares to the 3.3% in Q2.

British multinational financial services company Standard Chartered plc expects Hong Kong to have weathered external headwinds well in Q2. These headwinds include China's late June liquidity squeeze, which raised more worries about its growth, and mounting concerns about stimulus tapering by the US Federal Reserve.

StanChart said Hong Kong’s narrowing trade deficit should be a key growth driver, reinforced by the recent stabilization in external trade. Hong Kong’s exports rose 1.5% on-year in September, ahead of market expectations.

The bank also said private consumption expenditure could have eased somewhat, as suggested by the moderation in retail sales growth to 5.1% on-year by value and 4.9% by volume in September. The still-tight labor market should provide plenty of fundamental support.