Hong Kong's economy is projected to have grown by 3.2% in 2018, a moderation from a buoyant 3.7% in 2017. This relatively robust performance was sustained by healthy domestic demand and a steady growth in external demand. Economic ties with the Mainland continued to strengthen, with completed and new infrastructure projects. For 2019, however, Hong Kong's economy faces new challenges, related both to uncertainties in the global economy and possible deterioration in China-US economic relations.