DBS’s Tse Expects Hong Kong Growth at 1.5% for 2020

The video discusses the severe economic downturn in Hong Kong, highlighting the decline in retail sales and visitor numbers. It forecasts a slight GDP growth in 2020 despite previous declines. Inflation risks are rising due to increased food costs. The retail sector is struggling, with a significant drop in sales, especially in jewelry and watches, due to fewer mainland Chinese visitors. However, landlords are offering temporary rental adjustments to mitigate business closures and layoffs. Unemployment has risen but is not expected to reach 4%.

What is the expected GDP growth for Hong Kong in 2020?

• 2.5%

• 0.5%

• 3.0%

• 1.5%

What is one of the main reasons for the rising risk of stagflation in Hong Kong?

• Decrease in export tariffs

• Increase in tourism

• Reduction in government spending

• Increase in CPI and import food costs

Which sector is most affected by the downturn in retail sales in Hong Kong?

• Furniture

• Jewelry and watches

• Clothing

• Electronics

What percentage of Hong Kong's retail sales value is accounted for by mainland Chinese visitors?

• 30%

• 50%

• 40%

• 60%

What measure are landlords taking to help the retail sector in Hong Kong?

• Increasing rent

• Offering temporary rental adjustments

• Closing stores

• Reducing store hours