Hong Kong chart book - Gradual improvement in the making
• Private consumption (60% of GDP) saw a modest growth of 0.1% despite a strong equity market rally in 1Q19. Investment expenditure fell further by 7.0%, compared with the decrease of 5.8% in 4Q18, as cautious sentiment prevailed.
• Goods exports recorded the first decline since 1Q16 due to the ongoing China-US trade tension. Services export growth decelerated to 1.4% from 3.3% due to cautious investment sentiment, despite inbound tourism recovered somewhat.
• The property market appears to have bottomed out as a Dovish Fed will unlikely hike rates this year. A robust labor market with unemployment rate hovering at a 20 year low of 2.8% further buttress the market. As a result, home price went up by 5.0% since end-18 and 7.9% from the trough in 2019.
• The HK economy should continue to improve alongside gradual stabilization of the mainland economy.
To read the full report, click here to Download the PDF.
The information herein is published by DBS Bank Ltd and PT Bank DBS Indonesia (collectively, the “DBS Group”). It is based on information obtained from sources believed to be reliable, but the Group does not make any representation or warranty, express or implied, as to its accuracy, completeness, timeliness or correctness for any particular purpose. Opinions expressed are subject to change without notice. Any recommendation contained herein does not have regard to the specific investment objectives, financial situation & the particular needs of any specific addressee. The information herein is published for the information of addressees only & is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate legal or financial advice. The Group, or any of its related companies or any individuals connected with the group accepts no liability for any direct, special, indirect, consequential, incidental damages or any other loss or damages of any kind arising from any use of the information herein (including any error, omission or misstatement herein, negligent or otherwise) or further communication thereof, even if the Group or any other person has been advised of the possibility thereof. The information herein is not to be construed as an offer or a solicitation of an offer to buy or sell any securities, futures, options or other financial instruments or to provide any investment advice or services. The Group & its associates, their directors, officers and/or employees may have positions or other interests in, & may effect transactions in securities mentioned herein & may also perform or seek to perform broking, investment banking & other banking or financial services for these companies. The information herein is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. Sources for all charts & tables are CEIC & Bloomberg unless otherwise specified.
DBS Bank Ltd., 12 Marina Blvd, Marina Bay Financial Center Tower 3, Singapore 018982. Tel: 65-6878-8888. Company Registration No. 196800306E.
PT Bank DBS Indonesia, DBS Bank Tower, 33rd floor, Ciputra World 1, Jalan Prof. Dr. Satrio Kav 3-5, Jakarta, 12940, Indonesia. Tel: 62-21-2988-4000. Company Registration No. 09.03.1.64.96422.