Amro cuts Hong Kong’s 2025 growth outlook on trade uncertainty

[HONG KONG] Hong Kong’s growth outlook was cut by a regional organisation, which urged the city to diversify its economy and trading partners to counter growing protectionism.

The Asian financial hub is set to expand by 1.9 per cent in 2025 from the prior year, according to the Asean+3 Macroeconomic Research Office (Amro), a step down from the group’s 2.4 per cent forecast last month.

While first-quarter activity proved better than expected, it was largely driven by a front-loading of exports – as companies tried to beat a 90-day tariff pause window – and a boost in tourism. The trade picture is growing uncertain for the rest of the year, though, Amro analysts said.

They also encouraged the city to seek deeper partnerships and trade with other nations to offset US protectionism against China, while also saying deeper integration with China was important.

“It is crucial for Hong Kong to further calibrate its macroeconomic policy stance, bolster growth, secure new growth drivers and tackle structural challenges” while remaining a financial centre, economists wrote in a press release on Monday (Jun 2). BLOOMBERG