The economy of Hong Kong shrank 9% year-on-year in the three months to June of 2020, following an upwardly revised 9.1% drop in the previous period which was the highest on record. The economy contracted for the 4th straight quarter, as the coronavirus pandemic continued to severely hurt global and local economic activities, after a hit of months of anti-government protests. Private consumption fell 14.5%, gross domestic fixed capital formation plunged 20.6%, exports of goods declined 2.1% and imports 6.8%. In contrast, public expenditure went up 9.6%.
Looking ahead, the COVID-19 pandemic will remain a key threat to the global economic outlook and the challenging external environment will likely constrain Hong Kong’s export performance in the near term while the recent surge in COVID-19 cases in Hing Kong has clouded the outlook for domestic economic activity, a government spokesman said. On a quarter-on-quarter basis, the GDP shrank 0.1%.