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 :Hong Kong's economy contracted by 4 per cent 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 per cent.
On a quarterly basis, the economy contracted by a revised seasonally adjusted 3 per cent for the January-March period.
The government revised down the real gross domestic product forecast for 2022 to 1 per cent to 2 per cent, from an earlier 2 per cent to 3.5 per cent, 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 per cent GDP growth in Hong Kong in 2022 as the economy gradually recovers with the easing social distancing measures, led by private consumption.
