These 2 external forces will impact Hong Kong's economy big time

Oil makes its' gears tick.

A report that analyzed two external forces with regard to the Hong Kong economy, a plunge in crude oil prices and an increase in financial market volatility, has noted that these will probably pull in different directions in terms of their impact.

According to a research note from Hang Seng Bank, if mainly due to supply factors, the oil price decline would be generally good news for Hong Kong and the Mainland.

However, there appears to be the emergence of demand-side factors that are pushing down on crude oil prices, reducing the positive impact that lower oil prices might have on Hong Kong’s economy, said the report.

In addition, surging global financial market volatility would likely dampen business investment and consumer spending sentiment in Hong Kong, casting a shadow over the city’s economic outlook for 2016.