THE BANK OF EAST ASIA, LIMITED 
By For Immediate Release
BEA Predicts a Good Year for the Global EconomyBank's Economic Outlook Forecasts Real GDP Growth of 3.5% in Hong Kong
Hong Kong, 15th January, 2014 - The Bank of East Asia ("BEA") has stated that 2014 should generally be a good year for the global economy, in the January 2014 issue of
its Economic Analysis, which has been released today.
The US economy is recovering steadily, and the job market is brightening. In the eurozone, economic conditions have stabilised, although the region's demand for Asian exports will remain sluggish in early 2014. Meanwhile, the Chinese government will take advantage of a more stable economic environment to tackle the country's
structural economic problems. A restrictive credit policy will drag investment growth, diluting the positive impact of improving exports. Nevertheless, the Chinese economy is expected to expand by 7.6% in 2014. As the external environment improves, Hong Kong exports will increase, growing 7% in 2014. However, data show that the
expansion of the retail sector has subsided in recent months, casting uncertainty over the employment outlook. Slower growth in Mainland visitor arrivals will adversely affect Hong Kong's retail sales market. Meanwhile, correction in residential property prices
will not only affect local consumer sentiment, but also the employment market in related sectors, such as real estate and furnishing. The overall impact will slow growth in
private consumption to 3.2% in 2014, down from an expected 4.1% gain in 2013.
The introduction of demand-side cooling measures for Hong Kong's property market in
2013 led to a marked decrease in transaction volume. In face of subdued trading, property developers will be conservative in their pricing strategies in an attempt to accelerate the sale of new residential projects to make up for sales losses in 2013. With the prospect of rising funding costs, investors will sell properties at hand at an increased pace, further pushing prices downwards. Residential property prices are expected to fall by 10% in 2014. Easing residential property prices and rentals shall alleviate the momentum of inflation, which is expected to moderate at 3.7% in 2014.
Overall, stronger export and investment performances should offset weaker private
consumption growth. Hong Kong's real GDP is projected to grow by 3.5% in 2014.
Published on a quarterly basis, BEA's Economic Analysis provides investors with an in-depth look into current market and economic issues. Copies of the report can be downloaded via BEA's homepage: www.hkbea.com / Corporate Information / Economic Research.
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About The Bank of East Asia
Incorporated in Hong Kong in 1918, BEA is dedicated to providing comprehensive personal banking, commercial banking, wealth management, and investment services to its customers in Hong Kong and other major markets around the world. BEA is the largest independent local bank in Hong Kong, with total consolidated assets of HK$697.4 billion (US$89.9 billion) as of 30th June, 2013. The Bank is listed on The Stock Exchange of Hong Kong and is one of the constituent stocks of the Hang Seng Index.
With more than 240 outlets worldwide, BEA operates an extensive international
network covering Hong Kong and the rest of Greater China, Southeast Asia, the United Kingdom, and the United States. For more information on BEA, please visit any BEA branch or the Bank's homepage at www.hkbea.com.
- End - For press enquiries, please contact:
Mr. Paul Tang
Chief Economist
Economic Research Department Strategic Planning & Control Division The Bank of East Asia
Tel.: (852) 3608 5036
Email: tangpso@hkbea.com
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