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Wednesday, Oct 05, 2022

HK's economy in the second quarter is worrying

HK's economy in the second quarter is worrying

Hong Kong's economy sees negative growth in the second quarter, Financial Secretary Paul Chan Mo-po says as he hoped eased quarantine restrictions and consumption vouchers could have a boosting effect.
Chan said in his blog that the second round of e-vouchers has been disbursed since last Sunday, which immediately injected about HK$13 billion of consumption power into the local market.

However, the international geopolitical situation, as well as global inflation have seriously dragged down the performance of Hong Kong's exports, making the city's economy in the second quarter worrying.

Chan said that the economy fell 1.3 percent year on year in the second quarter. It was the second quarter that has seen negative growth after the 3.9 percent contraction in the first quarter.

The government has adjusted its economic growth forecast for the whole year to between -0.5 percent and 0.5 percent, expecting the economy to slightly improve in the rest of the year.

He also pointed out that although the first phase of consumption vouchers released in April has injected more than HK$30 billion of consumption power into the local market, making private consumption expenditure the main force supporting the economy, it is still not enough to fully offset the impact of weak exports.

Chan added that he had visited different types of exhibitions earlier and many of the organizers said they were under great pressure.

He said the government has shortened the inbound hotel quarantine period to three days since last Friday and implemented the color-based health codes, hoping to facilitate people and tourists returning to Hong Kong, so that foreign-related economic activities can regain momentum.
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