Hong Kong’s GDP growth came in at 2.4% in 3Q14，underperforming the market’s expectations for a 3.0% gain. It is mainly result from tepid recovery of external demand，lower-than-expected slack in domestic demand and uncertainty arising from “Occupy Central” movement. The global economy and international trade are expected to improve moderately under the “New Mediocre” in 2015，with a number of new features：The U.S. will become a bright spot，the Euro-zone will remain sluggish and China will accelerate economic restructuring under the “New Normal”. Hong Kong will benefit from the rebound in external demand while imbalance will be ease off. However，the possible real estate market downturn and the political issues may post as headwinds to Hong Kong’s domestic demand. We therefore，expect that Hong Kong’s economy will grow 2.8% in 2015，stronger than the 2.2% increase this year but still weaker than the potential growth rate；Hong Kong’s inflation may remain slow and the current inflation cycle being driven by property prices is nearing an end.