Hong Kong’s economy is expected to have slowed further in the fourth quarter of last year, weighed down by weaker external demand, and could dip into recession this year, analysts said.

HSBC Holdings Plc forecast fourth-quarter growth of 3.3 percent, roughly in line with a 3 percent expectation from economists at the University of Hong Kong, and higher than the 1.5 percent projected by JP Morgan.

"Hong Kong escaped recession in 2011, but another dip into recession remains possible for 2012," HSBC said in a report.