IMF warns of HK recession – The Standard

Hong Kong faces a potential recession if the European financial crisis deepens, the International Monetary Fund warned.

Economic growth locally is expected to slow to 4 percent in 2012 from 5.75 percent estimated for this year because of weakening external demand, the fund said in a report released yesterday.

In the third quarter, the economy grew a mere 0.1 percent from the previous three months. Last Friday the government lowered its full-year economic forecast from 5-6 percent to 5 percent.

“The global economy has reached a dangerous point. Risks in the euro area have risen as policy uncertainty has interacted with sovereign funding strains and banking sector stress, feeding back into the real economy,” the IMF said.

Source: thestandard.com.hk

via IMF warns of HK recession – The Standard.