Hong Kong's economy down 4 pct in Q1: advance estimates
The Hong Kong Special Administrative Region government announced Tuesday that based on advance estimates, Hong Kong's economy decreased by 4 percent in real terms in the first quarter of 2022 from a year earlier.
The decline of gross domestic product (GDP) was attributable to weak domestic and external demand, according to a report released by the Census and Statistics Department of the HKSAR government.
A government spokesperson said the Hong Kong economy faced immense pressure in the first quarter of 2022.
Externally, a moderating global demand growth and epidemic-induced cross boundary transportation disruptions posed substantial drags to exports. Domestically, a wide range of economic activities were hard hit by the fifth wave of the epidemic, the spokesperson said.
Analyzed by major GDP component, private consumption expenditure decreased by 5.4 precent in real terms in the first quarter of 2022 from a year earlier, as against the 5.3-percent increase in the fourth quarter of 2021, the report showed.
Government consumption expenditure measured in national accounts terms grew by 5.9 percent in real terms in the first quarter of 2022 over a year earlier, after the increase of 4.1 percent in the fourth quarter of 2021.
Gross domestic fixed capital formation decreased by 8.3 percent in real terms in the first quarter of 2022 from a year earlier, deteriorating from the decrease of 0.6 percent in the fourth quarter of 2021.
Over the same period, total exports of goods and imports of goods measured in national accounts terms recorded a decline of 4.5 percent and 5.9 percent respectively in real terms from a year earlier, the report said.
Looking ahead, the global economy will continue to face significant challenges in the near term, the spokesperson said.
Nonetheless, the improving epidemic situation together with the HKSAR government's various support measures should be conducive to the alleviation of cross-boundary transportation disruptions and hence recovery of trading activities, the spokesperson added.