Hong Kongs Q1 GDP contracts by 4% y/y; 2022 growth forecast revised down

div classBodysc17zpet90 cdBBJodivpHONG KONG Reuters Hong Kongs economy contracted by 4 in the first quarter from the same period a year earlier, government data showed on Friday, ending four quarters of recovery as the city imposed its most stringent measures to curb COVID19.p

pGrowth in the fourth quarter of last year was 4.7.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pOn a quarterly basis, the economy contracted by a revised seasonally adjusted 3 for the JanuaryMarch period.p

pThe government revised down the real gross domestic product forecast for 2022 to 1 to 2, from an earlier 2 to 3.5, after taking into account the deteriorating export outlook. p

p“Looking forward, the worsened global economic prospects may continue to weigh on Hong Kongs export performance,” the government said in a statement.p

pIt said domestic economic activities should show some revival with the easing COVID outbreak and the gradual relaxation of social distancing measures, while the issue of a new round of consumption vouchers would support to domestic demand. p

pMeanwhile, Morgan Stanley estimates 0.5 GDP growth in Hong Kong in 2022 as the economy gradually recovers with the easing social distancing measures, led by private consumption. p

p Reporting by Donny Kwok and Twinnie Siu editing by John Stonestreetp

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