Time is still needed for the territory's investment atmosphere to further improve. Any ripples in the global markets will affect the performance of Hong Kong's exports and her economy, as a result of her distinctive external openness. The risk of a further slowdown or even recession in the US will certainly darken Hong Kong's immediate export outlook. The weakness of the euro against the US dollar may have served in practice to boost European exports. Domestic sales have registered more than 47 consecutive months of decline.
Deflationary pressure is still in place.
Southeast Asia Southeast Asia is still suffering from political and economic uncertainty and chronic weaknesses that have kept, and will continue to keep, its growth rate lower than those of other Asian economies, particularly in the Northeast. Indeed, more radical progress needs to be made for a full revival in this region. The Chinese Mainland Stimulated by the government's expansionary fiscal and monetary policies, the Mainland economy has performed a lovely turn-around. It is estimated that over 220,000 Hong Kong people spend in our northern neighbour Guangdong every weekend and public holiday. Hong Kong's relatively higher property prices and lower investment returns have forced local residents to buy apartments across the border, thus diluting the purchasing power in the territory.