Hong Kong economy shrinks 4 per cent under anti-virus controls

HONG KONG

The economy of Hong Kong shrank by 4% in the March quarter compared to the same period a year ago. This was after restaurants and other businesses were closed in China due to a rise in coronavirus infection.

According to government data Tuesday, growth fell from the previous quarter’s 4.4% increase. Exports of goods dropped 4.5% over a year, while consumer spending declined 5.4%.

Hong Kong shut down amusement parks and placed restrictions on restaurants and other businesses to stop an outbreak that infected 1.2million of its 7.4million residents.

In April, restrictions were eased by the government after the outbreak began to subside. The ban on non-residents flying into the territory for 2 years was lifted. Hong Kong faces challenges due to weakening global trade and a shortage of visitors from China’s mainland.

Sheana Yue, Capital Economics: “While there are some signs that activity has rebounded, we expect the recovery will be weak.” saidA report.