Too Early To Adjust GDP Forecasts: Paul Chan

Financial Secretary Paul Chan has ruled out adjusting Hong Kong's GDP forecasts, in light of the apparent breakdown in US-China trade negotiations.

Hong Kong's economy grew by just 0.6 per cent in the first quarter from a year earlier - the weakest in a decade. A government economist had warned on Friday that if the trade tensions escalate, the SAR’s economy would inevitably face greater downward pressure.

But when asked on a radio programme if the government would adjust its full-year growth forecast of between two to three percent, the financial chief said it’s too early to make the call as the markets may get the wrong signal.

“We are monitoring the situation of US-China trade negotiation very closely. The negotiation has been quite bumpy. Although lately there are some negative news, but we do think it is premature to adjust our GDP forecast for the year at this stage. We will continue to follow our practice to update this GDP forecast in August and we will monitor the situation very closely”, he said.

But Chan stressed the government will offer help to small to medium-sized enterprises and stimulate consumption if the economy takes a turn for the worse.