Hong Kong’s economy contracted by 4.2% year-on-year in the fourth quarter of 2022, marking the fourth consecutive quarter of contraction, according to a statement from the Hong Kong government. The slump was primarily driven by the collapsed export sector, which was affected by weak global demand.
Leading economists from prominent financial institutions, including Morgan Stanley, DBS, Hang Seng Bank, and Netisis, had previously predicted a contraction of between 2.8% and 3.1% in the fourth quarter of 2022.
In the preceding quarter, Hong Kong’s economy contracted by 4.6%. The ongoing contraction underscores the challenges faced by the territory’s economy, which has been grappling with the impacts of the global pandemic and its trade tensions with China.