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George Ma
May 5 09:03

Hong Kong's GDP fell by 8.9% in Q1, stronger than forecast

Exports and domestic demand are expected to remain under "significant pressure".
Hong Kong's economy experienced a record drop in the first quarter amid the negative effects of coronavirus infection COVID-19. According to preliminary data released on Monday, Hong Kong's GDP declined by 8.9% in annual terms in January-March 2020. This is the most significant decline since 1974. In 2019, the economy contracted by 1.2%. The data was worse than predicted by economists interviewed by The Wall Street Journal, who on average expected a 5.2% decline in GDP.

The decline in GDP in quarterly terms, taking into account the seasonal factor in January-March, was 5.3%, also becoming a record, according to official data.
Exports and domestic demand are expected to remain under "significant pressure in the near term," as the Coronavirus Pandemic continues to put pressure on economies around the world, said a representative of the Hong Kong government.
Hong Kong Finance Minister Paul Chan said last week that Hong Kong's GDP decline in 2020 is likely to be more significant than expected due to the negative effects of COVID-19. According to the new forecast of the Ministry of Finance, the economy will shrink by 4-7% this year. Previously, it was expected that this year's GDP change may range from a 1.5% decline to a 0.5% increase.