HK Economy- Highlight
12 June 2019
Uncertainty over the UK’s departure from the EU is growing, with the risk of a damaging disorderly Brexit higher than ever. Hong Kong traders with operations in both the UK and EU markets will be aware that the UK crashing out of the EU could result in significant supply chain disruptions. The Q&As below are designed to help Hong Kong traders take necessary precautionary measures in the event of either an orderly or a hard Brexit.
The HKTDC Export Index edged down to 37.3 in 2Q19, indicating that the uncertain market environment is likely to hamper Hong Kong’s export growth over the near term. As the drop was relatively small – 1.9 points – this may suggest that the fall in exporter confidence has now plateaued.
Escalating trade tensions and heightened geo-political uncertainties have severely decelerated Hong Kong’s export growth momentum, increasing the urgency for local business to further diversify their operations and open up new markets. In view of the threat of prolonged trade disruption and slowing growth in the major economies, the HKTDC Research has revised its 2019 export growth forecast downward from the original 5% to 2%, with risk on the downside.