'Growth Slump Shows SAR Economy Is At Crossroads'

Secretary for Commerce and Economic Development Edward Yau says Hong Kong's economy is at a crossroads, after new figures showed that growth slumped to its lowest level in a decade in the first quarter of this year.

GDP grew by just 0.5 per cent in the first quarter, the lowest growth rate since the height of the global financial crisis in 2009. Yau said economic sentiment had picked up amid renewed hopes of a Sino-US trade deal, but exports were still falling.

"There is still a lot of uncertainty ahead," Yau said after a radio programme on Saturday morning. "A lot depends on whether, and how far, the US and China come to an agreement on the trade dispute.

"But having said that, even if there is an agreement, whether that will bring a sharp return in the economic performance depends on whether tariffs are removed, and also depends on whether the more fundamental issues between China and the US are being resolved by further trade negotiation or agreement."

Sino-US trade talks were held in Beijing this week and are expected to continue in Washington next week.