The Hong Kong government has estimated its gross domestic product (GDP) fell 4% in the January-to-March period, the biggest contraction since Q3 of 2020, as local restrictions to curb Covid hit activity and China’s own omicron outbreak disrupted trade. A government spokesperson said the city’s fifth coronavirus wave, along with moderating global demand growth and “epidemic-induced cross-boundary transportation disruptions” all dragged on the economy. The city imposed strict social restrictions during the quarter. Samuel Tse, an economist at DBS Group Holdings Ltd in Hong Kong, said this shows how private consumption, retail sales, and the pandemic in China have hit growth. Tse had forecast a 1.2% contraction because of a low base of comparison with Q1 of last year. The Asian finance hub is now slowly starting to reopen.
top of page
bottom of page