Hong Kong Business Forecast Hong Kong's economy is likely to sink deeper into recession during the next half-year, according to a survey of leading companies.
Most companies surveyed expect the recession to continue for at least six months.
In a poll conducted by the South China Morning Post newspaper and banking giant Nomura International, half the 150 firms queried expect a further contraction in business, which will lead to declining profits and lower prices. One third of those surveyed expect the economy to remain sluggish, but do not foresee a steeper drop-off in economic growth. The survey generally supports the view of many local economists who say Hong Kong will enter a deflationary phase. They are already down some 40-percent from their 1997 peak.