Hong Kong’s economy contracted by 4% in the first quarter compared to the same period last year, according to final data from the statistical office. This is the first decline in GDP since the fourth quarter of 2020 and the most significant since the third quarter of 2020, Trading Economics notes. It is due to a strict lockdown imposed in the city due to new outbreaks of COVID-19. According to the new forecast, by the end of 2022, the Hong Kong economy will grow by 1-2% against the previously expected 2-3.5%. Such forecast is presented in the budget published on Friday. At the same time, inflation is still expected to be 2.1%, core inflation – 2%. In January-March this year, consumer spending fell by 5.5% in annual terms, business investment – by 8.4%. Meanwhile, government spending rose 6% on government stimulus. Export of goods decreased by 4.5%, services – by 2.8%. At the same time, imports of goods fell by 5.9%, services – 3.4%. GDP in the first quarter compared to the previous three months decreased by 3%. For comparison, in the fourth quarter of 2021, Hong Kong’s economy grew by 4.7% year-on-year and 0.2% quarter-on-quarter. Source: FINMARKET.RU

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