ADB forecasts steady growth of 3.5-3.6% for next two years

China economy expected to boost opportunities.

According to ADB’s Asian Development Outlook 2014, the economy is forecast to grow by 3.5% in 2014 and 3.6% in 2015. This is within the range of 3.0%–4.0% that the government forecast for 2014.

In the next 2 years, as the economies of the US and the euro area strengthen, the external trade of Hong Kong, China is expected to pick up. Exports are expected to grow over the next 2 years by an average of 8.2%, and imports by 7.0%.

Here’s more from ADB:

Close links to the PRC economy are expected to open up more business opportunities in that market, and facilitate access to more provinces, for service companies based in Hong Kong, China. This should mitigate any adverse impact from slower growth in the PRC.

Inflation is expected to moderate to 3.8% in 2014, as the slower pace of rent hikes in the last quarter of 2013 feeds through and as international food and oil prices decline with expected better supply.

As these developments feed through in turn to 2015, inflation is envisaged declining slightly to 3.7%.