Reflecting the higher-than-expected 4Q 2016 GDP print (and resulting carry-over effect) and stronger-than-expected FY2017 fiscal stimulus, Nomura raised its HK 2017 GDP growth forecast markedly to 2.2% from 0.5%.
The research house noted that the government yesterday announced one-off relief measures (e.g., increased salary tax deduction and supports for the elderly and poor families) and capital investments (e.g., building rehabilitation) to support the domestic economy, including tourism, construction and retail sectors.
The government estimated the combination of short-term relief measures and capital spending initiatives will boost 2017 GDP by 1.1%.
Nomura also sees smaller risks of a housing market correction in 2017, as higher economic growth (and therefore higher household income) will likely offset any negative impact from higher interest rates on property markets.
全新節目《說說心理話》青少年不可以戀愛！？真實個案講述驚心動魄經歷► 即睇
