People's Republic of China-Hong Kong Special Administrative Region

Growth bottomed out and economic activity has gathered momentum since the second half of 2016 and over the course of 2017, in line with the global economic recovery. The macroeconomic outlook has improved and a robust recovery is expected to continue. Nevertheless, the outlook faces multiple challenges, both external and domestic, including from tighter global financial conditions, possible bumps in Mainland China’s ongoing transition, a retreat from cross-border integration, a potential adjustment following the current housing boom, as well as long-term challenges from rapid population aging.