Hong Kong GDP Contracts Most Since 1974

[Sergey Golubev]

Hong Kong GDP Contracts Most Since 1974 Amid Covid-19 Pandemic

The Hong Kong economy contracted the most on record since 1974 in the first quarter due to weak domestic and external demand amid coronavirus, or covid-19, pandemic, the advance estimate from the Census and Statistics Department showed Monday.

GDP decreased 8.9 percent in the first quarter from a year earlier, following a 3 percent drop in the fourth quarter. This was the largest decline on record since the reference period of the first quarter of 1974.

This was the third quarterly decline and the economy moved deeper into the recession.

Financial Secretary Paul Chan said "Our economic situation is very challenging." He said "We are deep into recession."

Quarter-to-quarter, GDP decreased by 5.3 percent in real terms in the first quarter, which was also the steepest on record.

The expenditure-side breakdown showed that private consumption expenditure logged a double-digit annual fall of 10.2 percent, while government spending grew 8.3 percent.

Gross domestic fixed capital formation plunged 13.9 percent.

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• MaksiGen_Range_Move MTF - indicator for MetaTrader 5
• Price prediction by Nearest Neighbor found by a weighted correlation coefficient - indicator for MetaTrader 5