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Saturday, May 15, 2021

Economy contracts by 6.1pc in 2020, drops by 3pc in final quarter

Economy contracts by 6.1pc in 2020, drops by 3pc in final quarter

Hong Kong's gross domestic product was estimated to have fallen by 3 percent year-on-year in the fourth quarter of 2020, compared with a drop of 3.6 percent in the third quarter last year, the Census and Statistics Department released.
The moderate drop was attributed to the improvement in domestic and external demand. For 2020 as a whole, GDP contracted by 6.1 percent in real terms from 2019.

Private consumption expenditure fell by 7.6 percent in the last quarter from a year earlier, from the 8.2 percent decline in the third quarter in 2020. For 2020 as a whole, private consumption expenditure fell by 10.2 percent year-on-year.

Government consumption expenditure measured in national accounts terms grew by 5.6 percent in the fourth quarter of 2020 over a year earlier, after an increase of 7.1 percent in the third quarter. For 2020, government consumption expenditure increased by 7.8 percent over 2019.

Gross domestic fixed capital formation increased by 2.6 percent in the fourth quarter, over a year earlier, as against a drop of 10.9 percent in the third quarter. For 2020, gross domestic fixed capital formation fell by 11.6 percent from 2019.

Positive growth is expected in 2021, but the economic situation in the first half of the year will remain challenging and the degree and speed of recovery is subject to a host of uncertainties, especially those about the pandemic situation, a government spokesman said.
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