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Hong Kong Sees Possible Contraction in Economy This Year

  • Government revises GDP forecast to range of -0.5% to 0.5%
  • Change to projection follows pessimistic view from economists
The Central district of Hong Kong.

The Central district of Hong Kong.

Photographer: Paul Yeung/Bloomberg
Updated on

Hong Kong now expects its economy to potentially contract this year for the third time since 2019 as the city grapples with Covid restrictions, a trade slump and other global headwinds. 

Gross domestic product is forecast to contract or expand in the range of -0.5% to 0.5% in 2022, down from a previous prediction of 1% to 2%, the government said Friday. Its second-quarter GDP contraction was revised to 1.3% from an earlier estimate of 1.4%.