Friday, August 15, 2014

Hong Kong Cuts Growth Forecast After Unexpected Contraction

Hong Kong cut its economic growth forecast for the year after an unexpected contraction in the second quarter as a slowdown in China crimped the purchases of luxury items and weighed on local sentiment.
The economy is forecast to expand 2 percent to 3 percent, the government said in a statement, compared with its February prediction of 3 percent to 4 percent. Gross domestic product fell 0.1 percent in the second quarter from the prior three months, missing the median estimate of 10 analysts surveyed by Bloomberg News for 0.4 percent growth.
Retail sales in Hong Kong have dropped for five straight months through June as China’s economic growth moderated and the country’s anti-corruption campaign trimmed tourists’ spending on luxury items. Business investment and consumption have dropped, while unemployment rose, Financial Secretary John Tsang wrote on his government blog on Aug. 10.

http://www.bloomberg.com/news/2014-08-15/hong-kong-cuts-2014-growth-target-after-unexpected-contraction.html?cmpid=yhoo 

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