Chamber of Commerce slashes HK’s growth forecast

The Hong Kong General Chamber of Commerce (HKGCC) has revised downward its 2022 growth forecast for the local economy to 1.2 percent, as it called for more relief measures for businesses in next week’s budget.

The chamber’s annual growth projection announced on Thursday was 1.6 percentage points lower than its estimate in December, before the city was hit by the latest Covid outbreak.

The business group also raised its year-end unemployment rate forecast from 3.7 percent to 4.8 percent, and reversed its retail sales projection from a five percent growth to a contraction of two percent.

“The impact of and uncertainties surrounding the latest variant are a sobering reminder of the long journey ahead of us in battling Covid-19,” wrote chairman Peter Wong in the chamber’s proposal to the financial secretary.

The HKGCC also proposed a 100 percent profits and salaries tax reduction, subject to a ceiling of HK$20,000.

The chamber was the latest to lower its Hong Kong growth forecast.

Fitch Ratings, Goldman Sachs, Morgan Stanley also recently cut their GDP estimates for the local economy.