Financial Secretary John Tsang Chun-wah said the strength of the US dollar, which is likely to continue in the short run, will have an adverse impact on the competitiveness of the city’s exports, the Hong Kong Economic Journal reported.
It is unlikely that Hong Kong’s lackluster outbound trade will improve any time soon while the slump in local retail sales is expected to continue, Tsang wrote in his blog.
On the other hand, Hong Kong people traveling overseas will benefit from the strong greenback given the local currency’s peg to the US dollar, Tsang said.
Tsang’s remarks came after he met with Federal Reserve chair Janet Yellen and Treasury Secretary Jack Lew during his visit to the United States recently.
Yellen has assured the Hong Kong official that global factors, including China’s economy, will be taken into consideration as the Fed decides on when to begin the interest rate hike cycle which many believe will come before the end of this year.
Meanwhile, Tsang said Hong Kong’s unemployment rate remains stable, which is good news for local consumption and economy. The latest jobless figure will be announced on Monday.
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