Economics

Hong Kong’s Growth Slows With Recovery Hinging on Reopening

  • ‘Virtually frozen’ inbound tourism restrains economic rebound
  • Government sees challenges from pandemic, supply bottlenecks
People line up to redeem consumption vouchers at a convenience store in Hong Kong on Aug. 1.Photographer: Bertha Wang/AFP/Getty Images
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Hong Kong’s economy grew at a slower pace than analysts expected last quarter, with the rollout of spending vouchers to residents not enough to keep growth momentum going as the city’s borders stay closed.

Gross domestic product rose 5.4% in the third quarter from a year earlier, a government report showed Monday, lower than the 5.7% median estimate in a Bloomberg survey of economists and down from 7.6% in the previous three months. While the slowdown was largely due to fading base effects, the economy’s momentum clearly weakened, with GDP rising just 0.1% on a quarter-on-quarter basis.