Hong Kong economy contracted 1.4% on year in Q2 after revised 3.9% contraction in Q1
DATA MACRO
Hong Kong economy contracted 1.4% on year in Q2 after revised 3.9% contraction in Q1
DATA MACRO

Hong Kong economy contracted 1.4% on year in Q2 after revised 3.9% contraction in Q1

 

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Hong Kong’s economy contracted 1.4% in Q2 from a year earlier, advance government data showed on Monday, as exports and investments remained sluggish, and COVID-19 weighed on economic activity.

The city’s economy contracted by 3.9% year over year in the first quarter, showed the revised data from the government.

“Looking ahead, the worsening global economic prospects will continue to weigh on Hong Kong’s export performance in the remainder of the year,” the city government said, adding that external trade may get some relief if COVID restrictions on movements across the land border with the mainland are relaxed.

“Domestically, economic activities are likely to show further revival in the rest of the year, but the extent will depend on how the local epidemic evolves and how the tighter financial conditions affect consumer’s spending power and sentiment,” the government said, adding that government measures, including a consumption voucher scheme, should lend support.

On a quarterly basis, the economy grew a seasonally adjusted 0.9% in April-June period, as compared with a revised 2.9% decline in the previous quarter.