Domestic Demand Cooling In The Near Term

We have a slightly bearish outlook on the Hong Kong consumer in the near term. A reversal in Hong Kong's booming property market will inevitably weigh on consumer purchasing power and curtail spending on higher value consumer goods. Global headwinds are also likely to weigh on Hong Kong's export-oriented economy, with negative spillover effects on the labour market. These dynamics are likely to take their toll on the Hong Kong consumer, although we acknowledge that waning inflationary pressures should help lend some upward support to domestic demand.

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