Hong Kong Economy Contracts for 1st time in a Decade


The Hong Kong economy shrank 2.9 percent year-on-year in the third quarter of 2019, after expanding a downwardly revised 0.4 percent in the previous period, an advanced estimate showed. It was the first yearly economic contraction since the third quarter of 2009, when the economy shrank 1.7 percent. Private consumption dropped and fixed investment declined further while government spending grew at a faster pace.

Private consumption shrank 3.5 percent, after a 1.3 percent growth in the second quarter of the year; and fixed investment declined 16.3 percent, faster than a 10.8 percent in the prior period. On the other hand, government spending increased 5.3 percent, higher than a 4 percent expansion in the three months to June. Exports of goods fell 7 percent, following a 1.1 percent decline in Q2 and imports of goods dropped 3.8 percent, after rising 1.3 percent in the previous quarter.

On a seasonally adjusted quarterly basis, the economy is expected to shrink 3.2 percent in the third quarter of 2019, following an upwardly revised 0.5 percent contraction in the prior period.

Hong Kong Economy Contracts for 1st time in a Decade


Census and Statistics Department l Stefanie Moya | stefanie.moya@tradingeconomics.com
10/31/2019 9:03:23 AM