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Hong Kong's Economy Has Entered Its Worst Recession Since 1974

Hong Kong's Economy Has Entered Its Worst Recession Since 1974

Hong Kong's GDP in the second quarter fell by 9% in annual terms, according to preliminary data. In January-March, the region's economy shrank by a record of 9.1%, as it turned out after a review of statistics.

Hong Kong's GDP shrank for the fourth quarter in a row, the worst recession since at least 1974.

Analysts had expected just 2.2% growth in April-June, according to Trading Economics. They attribute this to the continuing strong negative impact of the pandemic on the global and local economy.

Consumer spending in Hong Kong in April-June collapsed by 14.5%, business investment - by 20.6%. Exports of goods decreased by 2.1%, imports-by 6.8%. Government spending jumped by 9.6%.

Hong Kong's GDP in the second quarter fell by 0.1% compared to the previous three months. In January-March, this indicator fell by 5.3%.