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Citi raises Hong Kong’s Q2 growth forecast

Citigroup Inc raised its growth forecast for Hong Kong Kong to 2.4% in Q2 from an earlier estimate of 0.3%, as the Asian financial hub sped up measures to reopen. Citi economist Adrienne Lui said a Q1 contraction of 4% in gross domestic product (GDP) from a year prior was likely the “trough for economic growth this year, barring another infection wave.” Lui said a faster-than-expected decline in infections and a decision to relax some Covid-related restrictions quicker than originally intended spurred the revision in year-on-year growth for Q2. Citi maintained its full-year GDP growth forecast at 2.2%, the low end of the government’s estimate of up to 3.5%, saying a “genuine” recovery “depends ultimately on the resumption of quarantine-free travel” between Hong Kong and China.

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