Global Economic Outlook - The World Bank's latest Global Economic Prospects report indicates that despite ongoing trade tensions and policy uncertainties, global economic resilience exceeds expectations, with growth rates projected to remain stable over the next two years, declining to 2.6% in 2026 and rebounding to 2.7% in 2027, an upward revision from previous forecasts [2] - China's growth rate for 2026 is expected to be 4.4%, reflecting fiscal stimulus, resilient exports, and stabilized trade policies [2] East Asia and Pacific Economic Outlook - The East Asia and Pacific region's economic growth is projected to slow from 5.0% in 2024 to 4.8% in 2025, with China's growth expected to decelerate to 4.9%, supported by fiscal stimulus and resilient exports, although real estate investment continues to contract [3] - By 2026, the region's growth rate is expected to decline to 4.4%, primarily due to slowing growth in China, while growth outside of China is projected to slightly decrease to 4.5% in 2026 before rebounding to 4.7% in 2027 [3] Developing Economies - Growth in developing economies is anticipated to slow from 4.2% in 2025 to 4% in 2026, with a potential recovery to 4.1% in 2027, while low-income countries are expected to grow faster, averaging 5.6% during 2026-2027 due to solid domestic demand and export recovery [4] - The income gap between developing and developed economies remains significant, with per capita income growth in developing economies projected at 3%, which is about 1 percentage point lower than the average from 2000-2019, resulting in per capita income being only 12% of that in developed economies [4]

Core Viewpoint - The private sector activity in the Eurozone remains strong in November, indicating potential acceleration in economic growth for the last months of the year [1][3]. Group 1: Economic Indicators - The Eurozone's November SPGI Composite PMI preliminary value is 52.4, nearly unchanged from October's 52.5, and remains above the critical threshold of 50, with analysts expecting 52.5 [1]. - The services sector achieved its best performance in a year and a half, helping to offset unexpected weakness in the manufacturing sector [3]. - The Eurozone's November SPGI Services PMI preliminary value is 53.1, exceeding market expectations, while the Manufacturing PMI unexpectedly dropped to 49.7, below the expected 50.2 [3]. Group 2: Country-Specific Performance - Germany continues to lead, although its economic expansion has slowed, with the November SPGI Composite PMI falling to 52.1, below expectations [3]. - France's economic performance exceeded expectations with a November SPGI Composite PMI of 49.9, although it remains below the growth threshold, impacted by long-standing budget issues [3]. - The private economy in France showed signs of stabilization in November after a slight decline in October, but the foundation for this stabilization remains unstable due to unresolved budget issues and ongoing political tensions [3]. Group 3: Economic Outlook - The economic expansion in the Eurozone is expected to remain stable, with the services sector's significant share in the overall economy suggesting that growth in the fourth quarter should surpass that of the third quarter [5][6]. - Despite the manufacturing sector's drag on growth, the overall economic performance in Europe is better than expected, with projections indicating growth will remain close to this year's levels through 2026 due to new investments in infrastructure and military [6]. - The current economic conditions are not sufficient for the European Central Bank to further lower interest rates, which have already been halved from a peak of 4%, as inflation rates have rebounded close to the 2% target [6].

Core Viewpoint - The Hong Kong economy showed a real GDP growth of 3.8% in Q3 2025 compared to the same period last year, an increase from the previous quarter's growth of 3.1% [1] Group 1: GDP Components - All components of GDP recorded real growth in Q3 2025. Private consumption expenditure rose by 2.1% year-on-year, up from 1.9% in the previous quarter [1] - Government consumption expenditure increased by 1.9%, down from 2.5% in the previous quarter [1] - Gross fixed capital formation further increased by 4.3%, compared to a 1.9% rise in the previous quarter [1] Group 2: Exports and Imports - Goods exports recorded a real increase of 12.1% year-on-year in Q3 2025, up from 11.5% in the previous quarter [2] - Service output rose by 6.3%, down from an 8.6% increase in the previous quarter [2] - Goods imports increased by 11.7% year-on-year, slightly lower than the 12.6% growth in the previous quarter [3] - Service inputs rose by 2.6%, down from 7.3% in the previous quarter [3]