HK, Singapore economies both sinking – but for different reasons

HONG KONG - Although the headline number for Hong Kong GDP is better than expected, the details show a much weaker picture, says global asset manager Nataxis. Lower consumption and investment, coupled with a decline in exports, in sinking the city’s growth prospects. And imminent monetary policy normalisation by the FED is starting to have an impact on housing prices.

“Singapore is less dependent on China but certainly more on oil, so growth sinking as well,” Nataxis says. “However, Singapore has more monetary policy independence, which is helping in terms of a cheaper currency.” www.nataxis.com (ATI).