Hong Kong's economy shrinks most frequently in 46 years

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Hong Kong's economy shrinks most frequently in 46 years

 May 04, 2020 06:44 PM
Direct:  Hong Kong's economy experienced the largest quarterly contraction in at least 46 years during the first quarter of this year, with the trade and tourism sectors affected by the blow of the emerging Corona virus.

Government data showed Monday that Hong Kong's gross domestic product declined by about 5.3 percent, seasonally adjusted, during the three months to March, on a quarterly basis, compared to a 0.5 percent contraction in the previous quarter.

On an annual basis, Hong Kong's economy contracted by 8.9 percent in the first three months of this year, compared to a contraction of 3 percent in the same period in 2019.

This is the largest quarterly contraction since records began in 1974.

The government revised its forecast for the performance of the economy this year, to range from a contraction of 4 to 7 percent, compared to its previous estimate of a 1.5 percent decline to 0.5 percent growth.

The government attributed the negative data to Corona's strong blow to tourism and commercial activity, which has already begun to decline after months of anti-government protests last year.

By 11:29 am GMT, Hong Kong currency fell against the US dollar, about 0.6 percent, at the level of 129.04 Hong Kong dollars.