Hong Kong Economic Outlook
June 21, 2022After shrinking at the sharpest pace since 2020 in Q1 2022 due to soaring Covid-19 cases and tough ensuing restrictions, the economy is enjoying a strong rebound in Q2. Covid-19 cases have tumbled since their March peak, allowing for the progressive rollback of restrictions, and the distribution of HKD 5,000 (around USD 635) consumption vouchers to citizens in April is further aiding private spending. Looking at available indicators, retail sales surged year on year in April, while the private-sector PMI rose to an over decade-high in May. However, ongoing quarantine requirements continue to hamper tourism and the city’s international competitiveness. Moreover, in mid-June, testing requirements were reintroduced for entry to bars and clubs in response to a slight uptick in cases, raising the specter of a broader snapback of restrictions ahead.
Hong Kong Economic GrowthGDP growth will be tepid this year due to the impact of the pandemic at home and in mainland China. That said, government stimulus spending should provide some support, with a second batch of consumption vouchers to be issued in August. A more restrictive political environment and lingering Covid-19 measures pose risks to long-term competitiveness and investment. The FocusEconomics panel projects the economy to grow 1.0% in 2022, which is down 0.1 percentage points from the previous month’s forecast. In 2023, the panel sees growth at 3.8%.
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|Bond Yield||1.82||3.38 %||Dec 31|
|Exchange Rate||7.79||-0.11 %||Jan 01|
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Hong Kong Economic News
August 12, 2022
The economy contracted 1.3% on an annual basis in the second quarter.
August 1, 2022
The S&P Global Purchasing Managers’ Index (PMI) came in at 52.3 in July, down marginally from June's 52.4.
July 21, 2022
Consumer prices rose a seasonally-adjusted 0.10% over the previous month in June, matching May's reading.
July 6, 2022
The S&P Global Purchasing Managers’ Index (PMI) fell to 52.4 in June from May's 54.9.
June 30, 2022
Retail sales dropped 4.9% year on year in May in volume terms (April: +8.0% yoy).