Hong Kong's Financial Secretary John Tsang said on Monday that the Hong Kong economy would inevitably suffer from the world economy's downward trend, with exports and the tourism sector remaining weak.
Speaking to legislators during a Financial Affairs Panel meeting, Tsang warned that diverging financial policies in the United States and Europe may have far-reaching consequences on the world economy.
"The different central banks have diverging directions. The Fed is poised to ease interest rate while Europe is adopting easing measures. That kind of uncertainty will affect the investment environment," he said.
"There will be volatility in capital flow and that is a risk for the entire world economy."
Tsang said Hong Kong's economic growth in the fourth quarter is expected to range from 2 to 3 percent. He believed the 2.4-percent annual economic growth would be realized, saying that the government would continue to boost domestic demand through mitigation measures.
