Singapore’s economy set to slow, as Hong Kong roars back to life: survey

A tourism-supported consumption-driven rebound is boosting Hong Kong’s prospects and causing it to grow faster than forecast, economists say

Singapore, meanwhile, may be entering a technical recession driven by weakness in manufacturing amid a slump in global demand

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Hong Kong’s economy is expected to expand 6.7 per cent in the third quarter and 7.1 per cent in the final three months of the year, according to a Bloomberg survey of economists. Photo: Reuters

Published: 11:32am, 12 Jun 2023Updated: 11:40am, 12 Jun 2023

Hong Kong’s economy is expected to grow faster than previously forecast this year as consumer spending rebounds, while growth in rival financial hub Singapore is likely to slow as global demand weakens.

The latest Bloomberg survey of economists, conducted on June 1-7, shows growth in Hong Kong will come in at 4.6 per cent in 2023, up from a previous estimate of 3.4 per cent.

Singapore’s gross domestic product is projected to expand 1.4 per cent, down by half a percentage point, according to the survey.

“Hong Kong’s economy continues to see a consumption-driven rebound supported by tourism, boosting its short-term cyclical prospects,” said Gary Ng, a senior economist at Natixis SA.

Buildings in Singapore. The city state earlier expressed confidence that a travel rebound boosting its services sector would help its economy avoid a recession this year, despite a darkening global outlook. Photo: Bloomberg

Still, there are risks to the outlook from a slowdown in the global economy and rising interest rates, he said.