The government announced on Friday that it has lowered its full-year economic growth forecast to 3.2 percent, from the previous range of four to five percent.

During a press briefing, the government economist, Adolph Leung, attributed the downgrade to weakening export activity and lower consumer sentiment.

"Goods exports declined further by 8.6 percent amid weak external demand for goods. Exports to the mainland, the US and the EU fell further,” Leung said.

"The difficult external environment would continue to weight on exports of goods and investment and consumption sentiment."

However, Leung said he believes the local economy will pick up steam, thanks to a pick-up in the tourism sector and an improvement in private consumption.