, Hong Kong

Hong Kong’s recovery likely to remain moderate, gradual in H2

The strict COVID-19 measures are expected to dampen the city’s economic growth.

Hong Kong’s recovery will likely remain “moderate and gradual” in the second half of the year as tightened COVID-19 measures persist.

The city missed economic data expectations, the OCBC Treasury Research said in a report, citing, in particular, the retail sales that grew by 5.8% in June and the Purchasing Managers’ Index that slipped to 51.3 in July.

“Taken both together, it suggests that in the absence of tourist spending or solid external demand, the rebound of local consumption alone is unable to warrant any stronger economic recovery,” the report read in part.

“In other words, though the e-consumption vouchers look set to lend support to the local economy, the ongoing containment measures and the Delta variant spread across the globe could remain a drag.”

The government had launched the e-consumption voucher scheme that will distribute $5,000 to eligible residents for consumption at physical and online stores. It is expected to stimulate economic growth.

Read more: Retail sales up 5.8% in June but below expectations

The city recently relaxed restrictions on vaccinated tourists from certain places as well as suspended the Return2HK programme for visitors from China, except Guangdong province.

On top of this, the virus resurgence in China and Macau and Hong Kong’s vaccination rate also suggest that the government will not likely further reopen its borders.

“Taken all together, economic recovery may remain moderate and gradual in the second half,” the report also read.

The government recently extended some $377m worth of assistance to the tourism industry, which the OCBC said could be helpful in preventing business closures of layoffs.

Read more: Gov’t extends $377m funding for hard-hit tourism sector

Follow the link s for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

OPPO deepens PolyU ties with $32.5m AI imaging research push
The university will also launch a new faculty to address computing needs.OPPO Mobile is set to deepen its partnership with Hong Kong Polytechnic University (PolyU) by increasing funding and tech investment, particularly within the PolyU-OPPO Joint Innovation Research Centre.

Exclusives

Braillic’s AR tech helps brain surgeons see through the walls
The medical software provider plans to expand its use to spinal and orthopaedic procedures.
Healthcare
Stellerus helps organisations manage hazard, climate risks
The Hong Kong startup offers a fast and accurate early warning system for natural disasters.
K11 MUSEA bridges art, culture, and retail
Visitors find top-tier brands and museum-grade art pieces at the cultural-retail landmark.