Hong Kong’s economy grew by 2.4% in 2015, sustained largely by a strong expansion in household consumption. The government took supporting measures, including stronger public spending and tax reduction. The economy has become increasingly interwoven with that of the Mainland and a new bilateral agreement was signed to enhance trade in services. As Hong Kong’s economy is likely facing even gloomier climate in 2016, improved physical connections with the Mainland and tighter cooperation are key.