The Asian Development Bank on Tuesday cut its growth forecast for the Hong Kong economy in 2009 to a negative growth of 4.0 percent, from its previous projection of 2.0 percent negative growth released in March.
Unveiling the bank's flagship Asia Development Outlook 2009 Update in Hong Kong, Asian Development Bank (ADB) Chief Economist Jong-Wha Lee said Asia's trade-dependant economies was hit harder than expected, primarily through the trade channel.
"We cut Hong Kong's growth forecast this time because Hong Kong is no exception. It was also hard hit by the global downturn ... It turned out the first quarter of 2009 was very bad for almost all the traders in Asia," Lee told a press conference.
Nevertheless, Lee said he expected the Hong Kong economy to recover to 3.0 percent economic growth in 2010 as the global demand, especially global trade, would recover.
The growth forecast for the Hong Kong economy in 2010 remained unchanged at 3.0 percent in the updated version of the report.
The Western industrialized economies will recover, though mildly, in 2010, and the fast recovery of China will also help the Hong Kong economy to recover, Lee said.
But the Hong Kong economy was yet to return to its potential growth, usually estimated to be around six percent, even in 2010, Lee added.
The ADB report also projected a mild inflation of 1.3 percent in 2009, compared with the March forecast of 1.5 percent, and the inflation forecast for Hong Kong in 2010 remained unchanged at 2.0 percent.
Source: Xinhua
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