Economy shrinks by 1.3% YoY in Q2

This marks the second consecutive quarter of GDP contraction.

Hong Kong’s economy continued to shrink in the second quarter, dipping 1.3% YoY, data from the Census and Statistics Department (C&SD) showed.

Last quarter, the market’s gross domestic product (GDP) fell 3.9% YoY.

“As compared with the advance estimates released on 1 August 2022, the year-on-year rate of change of GDP in real terms for the second quarter of 2022 was revised from -1.4% to -1.3%,” said the C&SD.

Comparing Q2 to Q1, GDP rose slightly by 1.0%. The uptick was likely due to the increases in major GDP components like private consumption expenditure, which increased by 0.1% YoY, a rebound from last quarter’s 5.8% YoY dip.

Other GDP components that grew in Q2 were government consumption expenditure measured in national accounts terms (+13.0% YoY).

On the other hand, gross domestic fixed capital formation (GDFCF) decreased by 3.0%. Total exports and imports of goods also declined by 8.6% YoY, and 6.2% YoY, respectively.