>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<
Hong Kong’s economy contracted 1.3% in the second quarter from a year earlier, government data showed on Friday, marking the second straight quarter of year-on-year contraction for the city’s GDP, compared to a contraction of 3.9% in the previous quarter.
Seasonally adjusted GDP was 1% higher in the second quarter than the previous three months.
The outlook for the global financial hub was overshadowed by increasing inflation rates globally and an uncertain geopolitical situation, although the prospects of a revival in the mainland economy should offset risks, the government said.
“The markedly deteriorating external environment will weigh heavily on Hong Kong’s export performance in the remainder of the year,” a government spokesperson said.