Hong Kong Recession Eases
The Hong Kong economy is estimated to have contracted for a fourth consecutive quarter with a quarterly drop of 0.1% (Previous -5.3%), in turn, the yearly rate is expected to have posted a 9% drop from a year earlier (Previous -9.1%). This comes amid the damage stemming from the coronavirus crisis, while social unrest has also played its part in weighing on economic growth, in which external and domestic demand has taken a hit. This had been underscored by a record decline in private consumption (-14.5% Y/Y) as lockdown and social distancing measures disrupted activity.
Hong Kong GDP Contracts for a Fourth Consecutive Quarter
On a slightly more encouraging note, goods exports saw a notably smaller contraction of 2.1% Y/Y from the 9.7% Y/Y drop in Q1, given that production had resumed throughout the quarter. That said, the economic outlook remains challenged by the pandemic, particularly as concerns of a second wave begin to emerge. Elsewhere, souring relations between the US and China are likely to constrain economic activity in Hong Kong for the foreseeable future.
Hang Seng Price Chart: Daily Time Frame