OREANDA-NEWS. January 22, 2014. The Bank of East Asia (“BEA”) has stated that 2014 should generally be a good year for the global economy, in the January 2014 issue of its Economic Analysis, which has been released.

The US economy is recovering steadily, and the job market is brightening. In the eurozone, economic conditions have stabilised, although the region’s demand for Asian exports will remain sluggish in early 2014. Meanwhile, the Chinese government will take advantage of a more stable economic environment to tackle the country’s structural economic problems. A restrictive credit policy will drag investment growth, diluting the positive impact of improving exports.

Nevertheless, the Chinese economy is expected to expand by 7.6% in 2014.

As the external environment improves, Hong Kong exports will increase, growing 7% in 2014.

However, data show that the expansion of the retail sector has subsided in recent months, casting uncertainty over the employment outlook. Slower growth in Mainland visitor arrivals will adversely affect Hong Kong’s retail sales market. Meanwhile, correction in residential property prices will not only affect local consumer sentiment, but also the employment market in related sectors, such as real estate and furnishing. The overall impact will slow growth in private consumption to 3.2% in 2014, down from an expected 4.1% gain in 2013.