Economy contraction narrows in Q4 at 4.2%

In Q3, the economy shrank by 4.6%.

Hong Kong’s economy continued to contract in the fourth quarter of 2022, albeit at a slower pace,  falling 4.2% YoY, data from the Census and Statistics Department (C&SD) showed.

In Q3, the market’s gross domestic product (GDP) fell 4.6% YoY. 

According to C&SD, the decline in GDP was "mainly attributable to the continued weak performance in external trade during the quarter."

With the latest contraction, Hong Kong's full-year GDP fell by 3.5% from 2021.

READ MORE: Hong Kong economy may expand by 3.5% in 2023: BEA

In Q4, total goods exports and imports declined by 24.8% and 22.8%, respectively. Exports of services, on the other hand, increased by 2.3%.

"Total exports of goods plunged amid the sharp deterioration in the external environment and disruptions to cross-boundary truck movements. Domestic demand slackened, dragged initially by the fifth wave of the local epidemic and subsequently by tightened financial conditions," a government spokesman said.

"Nonetheless, private consumption has seen improvement since the second quarter and particularly towards the end of the year, in tandem with the stabilised local epidemic situation and thus progressive relaxation of social distancing measures, improved labour market conditions and disbursement of consumption vouchers," the spokesman added.