Asia

Hong Kong's Q1 GDP contracts by 4% y/y; 2022 growth forecast revised down

FILE PHOTO: A general view of skyline buildings, in Hong Kong, China July 13, 2021. REUTERS/Tyrone Siu

HONG KONG (Reuters) -Hong Kong’s economy contracted by 4% in the first quarter from the same period a year earlier, government data showed on Friday, ending four quarters of recovery as the city imposed its most stringent measures to curb COVID-19.

Growth in the fourth quarter of last year was 4.7%.

On a quarterly basis, the economy contracted by a revised seasonally adjusted 3% for the January-March period.

The government revised down the real gross domestic product forecast for 2022 to 1% to 2%, from an earlier 2% to 3.5%, after taking into account the deteriorating export outlook.

“Looking forward, the worsened global economic prospects may continue to weigh on Hong Kong’s export performance,” the government said in a statement.

It said domestic economic activities should show some revival with the easing COVID outbreak and the gradual relaxation of social distancing measures, while the issue of a new round of consumption vouchers would support to domestic demand.

Meanwhile, Morgan Stanley estimates 0.5% GDP growth in Hong Kong in 2022 as the economy gradually recovers with the easing social distancing measures, led by private consumption.

Source: Read Full Article