Hong Kong economic system ideas into technical recession

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Hong Kong economic system ideas into technical recession



Issued on: 01/08/2022 – 12:44Modified: 01/08/2022 – 12:42

Hong Kong (AFP) – Hong Kong has tipped again right into a technical recession, new authorities figures confirmed Monday, weighed down by mounting rates of interest, weakened international commerce and the town’s continued adherence to strict coronavirus controls.

Following a year-on-year lower of three.9 % within the first quarter of 2022, the town’s GDP once more reported decline within the second quarter on Monday — however with a narrower margin of 1.4 % — in accordance with advance estimates launched by the Census and Statistics Division. The downturn is reversing final yr’s restoration when the economic system loved a 6.3 % annual progress after the slowdown in 2019 and 2020, when the town was first upended by months of big, typically violent pro-democracy protests, after which the pandemic.The Hong Kong authorities stated the financial enchancment was smaller than anticipated because of weak efficiency in exterior commerce.Official statistics launched final month confirmed the worth of whole exports of products within the second quarter decreased by 4.2 % in contrast with the previous quarter. For the primary half of 2022, a visual commerce deficit of $206.1 billion, equal to eight.2 % of the worth of imports of products, was recorded.”Weakened international demand and continued disruptions to cross-boundary land cargo flows between the mainland and Hong Kong weighed closely on Hong Kong’s exports,” the federal government stated Monday.Financial coverage tightening by main central banks world wide is predicted to dampen international financial progress considerably whereas quarantine-free journey between Hong Kong and mainland China is but to have a transparent timetable beneath Beijing’s strict adherence to its zero covid coverage.The monetary hub’s new chief John Lee stated his authorities would quickly announce additional shortening of necessary resort quarantine for abroad arrivals, in accordance with an interview with the Hong Kong Financial Journal printed on Monday. “Connecting with the world and with the mainland, we will do each and they don’t seem to be contradictory,” Lee instructed the newspaper. “I perceive that certainly one of Hong Kong’s competitiveness lies in its worldwide connections.” In following China’s zero covid coverage, Hong Kong has been largely reduce off from the remainder of the world for greater than two years. It nonetheless has a few of the world’s strictest restrictions, together with week-long quarantine for arrivals and a ban on group gatherings with greater than 4 folks.Native media just lately reported that the federal government was mulling resuming quarantine-free journey for abroad arrivals in November, when the town is hoping to resuscitate its worldwide picture with a finance summit and the Hong Kong Rugby Sevens.
© 2022 AFP



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