Hong Kong economy logs rebound in Q2 amid challenges: gov't advance estimates

Hong Kong's economy improved in the second quarter with gross domestic product (GDP) increasing 0.9 percent in real terms as compared with the first three months, official advance estimates showed Monday.

However, according to the advance estimates, Hong Kong's GDP decreased by 1.4 percent in real terms in the second quarter of 2022 from a year earlier, compared with a decrease of 3.9 percent in the first quarter.

Exports of services rose by 1.8 percent in real terms in the second quarter of 2022 over a year earlier, as against the decrease of 2.9 percent in the January-March period, according to data released by the Census and Statistics Department of the Hong Kong Special Administrative Region government.

Imports of services decreased by 0.7 percent in real terms in the April-June period, down from the 3.8-percent decrease in the first quarter.

Analyzed by major GDP components, private consumption expenditure remained virtually unchanged in real terms in the second quarter of 2022 over a year earlier, compared with the decrease of 5.8 percent in the first quarter.

As the local epidemic situation generally improved and social distancing measures were relaxed in tandem, and aided by the government's various support measures, there was some revival in local activities, said a spokesperson for the HKSAR government.

The recent increase in the number of COVID-19 cases and tightened financial conditions have constrained the momentum in the latter part of the quarter, the spokesperson said, adding that the worsening global economic prospects will continue to weigh on Hong Kong's export performance for the remainder of the year.

Hong Kong's 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 consumers' spending power and sentiment, said the spokesperson.

Revised figures on GDP for the second quarter of 2022, as well as the revised GDP forecast for 2022, will be released on August 12.

In May, the HKSAR government expected the economy to grow 1 to 2 percent in 2022.