A NEW report released yesterday predicts that Hong Kong's economic growth will slow to 4.8 per cent next year.
The Hongkong Bank's economic research unit said weaker consumer spending would dampen economic growth.
However, things would be even worse but for an expected recovery in private consumption later in the year which should boost the territory's Gross Domestic Product figures and avoid an even bigger slump.
The situation was expected to improve in the second half of the year, as a result of expected interest rate cuts.
The bank says China's import growth would lead over exports next year, thereby squeezing the country's record trade surplus.
Benny Chiu, the bank's China Service Research manager, said the mainland's external trade sector faced uncertainties next year. China is expected to be affected by new reform policies.