Hong Kong economic growth in 2012 will be weak

It’s expected to be the weakest since 2009.

The government is set to announce fourth-quarter GDP figures and this year’s budget on Feb. 27 amid signs of improvement in the global economy. But the news isn’t expected to be upbeat.

The city is set to announce its weakest economic growth since the global financial crisis. GDP might have risen by only 1% last year, Prof. K.C. Chan, the financial services secretary, said recently. That compares with the 4.9% growth in 2011.

“I believe this year’s economy will be better than last year’s, but it is full of challenges,” Chan said.

Hong Kong is among economies with pegged currencies that need to be on alert for dangers such as asset bubbles. Hong Kong is balancing the need to spur growth by cooling a housing market that the International Monetary Fund said last year is at risk of an abrupt correction.