Dim economic outlook confronts Hong Kong

Tourism remains only one of a few bright lights in the otherwise gloomy economic landscape facing Hong Kong this year.

Hong Kong’s export volume to Europe dropped 9% year-on-year in the first four months of the year while new export orders weakened. Secretary for Financial Services & the Treasury Prof KC Chan told lawmakers that Hong Kong's near-term export outlook remains bleak.

He also said given the difficult external environment, the local employment situation may worsen in the coming months.

He said the property market is caught between a sluggish external economy and exceptionally low interest rates that may lead to substantial price fluctuations.

He said, however, that other domestic-oriented sectors have held up relatively well with the tourism sector cushioning the economy.