HK Economy Next Year

HK is not only undergoing a recession, next year, we are seeing price rises coming in at all angles.

Price rises coupled with recession, what do you call it - STAGFLATION, right？

WRONG, currently we have inflation below nominal interest rates and that's known as DEFLATION, it will

dampen consumption and capital investment like property investment.

When you have DEFLATION and STAGFLATION together, consumption will fall off the cliff and lead to serious unemployment and fiscal deficits.

If not for the outflow of labor, unemployment likely is much higher and more noises against the government covid stand.

Brace yourself for a real rough ride next year in HK.