Hang Seng Bank senior advisor George Leung on Sunday said the trade war with the US might prevent Hong Kong's GDP from reaching its predicted two percent growth this year.

Speaking on a radio programme, Leung said trade between China and the United States had almost completely halted, and Hong Kong's export volumes had significantly declined.

"It depends on how long the extremely high tariffs will last. If there is a quick conclusion to this ongoing trade war, it may minimise the impact on Hong Kong in the second half of this year," he said.

"I believe there will still be certain tariffs in place, so the outlook is not optimistic. But it won't be worse than the situation during the pandemic."

Leung said many Hong Kong companies were looking for new markets but that small and medium enterprises have less capacity to do so. However, Leung remained confident that Hong Kong still had opportunities thanks to its free port status and political stability.

In February's Budget, Financial Secretary Paul Chan had forecast GDP growth of two-to-three percent.