The Asian Financial Crisis Hong Kong's economic growth has been hit by the Asian financial crisis, and will continue to be affected in the short to medium term. Sustained speculative attacks on the Hong Kong Dollar in October last year have led to higher interest rates, which in turn have caused a sharp fall in property prices and hurt business. GDP growth for 1998 is likely to be meagre. The fallout has been painful. Tourism, retail, hotels and housing sectors have all suffered.
Interest rates are high.
Unemployment has edged up. The stock market remains unsettled. Inflation has dropped and is likely to continue falling. The Hong Kong Dollar has remained rock solid in the face of speculative attacks. Imports from East Asia are cheaper.