Salient to Investors:
Kevin Lai at Daiwa Capital Markets said:
- Hong Kong’s export-led economy, a barometer of global growth, is sinking into a recession that is likely to last for at least a year.
- Global demand is weak so the US and Europe will see a sharp slowdown, or near-zero growth in 2012.
- The Hong Long economy is the world’s most externally-driven so a slump there has grave implications.
- The Hong Kong economy will contract 1 percent over the 12 months ending March 31.
Robert Zoellick at the World Bank said the world economy is entering a new danger zone.
Donna Kwok at HSBC welcomes a healthy dose of moderation for a hot Hong Kong economy, and until year-end sees expects the impact of softer western demand to be countered by continued resilient Asian domestic demand.
Read the full article at http://www.bloomberg.com/news/2011-08-15/hong-kong-to-enter-recession-forecaster.html