Hong Kong quarterly: which industries will survive the deep recession?

Hong Kong has had difficulty coming out recession The economy has been in recession since 3Q19, and fell by -8.9%YoY in 1Q20, which is the deepest contraction since 1974 when the data was first compiled.  The trade war clearly hurt economic growth in 2019, with GDP growth of just 0.7%YoY and 0.4%YoY in the first two quarters of 2019, respectively.  The arrival of social unrest, together with the trade war, brought the economy into recession, with drops of -2.8%YoY and…

Hong Kong: Deep recession

GDP fell 8.9% YoY in 1Q20 Consumption contracted 10.3% YoY as opportunities for shopping and travel were severely curtailed during the Covid-19 outbreak. Investment contracted even more, by 13.9% YoY, as construction projects were delayed because outdoor work was prohibited. Even though the government spent money and imports dropped in 1Q20, this has not stopped the economy from contracting for three quarters in a row. More challenges ahead – Protests Unlike other economies which may return to normal after Covid-19…