JPMorgan Greater China Economist Grace Ng stated that Hong Kong's economic growth next year will benefit from an improved external environment and the stability of the Chinese economy. It is expected that Hong Kong's economic growth will reach approximately 3.2% next year, slightly higher than the 2.8% estimated for this year, but still below the long-term average growth rate of 4.6%. However, the Federal Reserve may begin tapering in January next year and start raising interest rates by the end of 2015. Coupled with an increase in housing supply after 2015, this may cause overall property prices in Hong Kong to fall by 25% next year, with small and medium-sized residential units declining by 30% and luxury properties by 20%.
She also expects Hong Kong's inflation rate to be approximately 3.8% next year, lower than this year's 4.4%. Future inflationary pressure will mainly stem from double-digit growth in rents. Additionally, housing and food prices will drive inflation next year, while rising labor costs and service prices will continue to have an impact. The unemployment rate is expected to remain stable at 3.4% next year.Investment involves risks, the above information is for reference only
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