Hong Kong 1Q GDP shrinks more than expected

Hong Kong’s borders have essentially been closed since early 2020, with few flights landing and hotel quarantine for arrivals damping demand, as the city follows mainland China in implementing a “dynamic zero” coronavirus strategy that aims to curb all outbreaks.

HONG KONG: Hong Kong’s economy contracted in the first quarter (1Q) of this year, as the city imposed its most stringent restrictions to curb an outbreak of Covid-19 that has battered business, led to an exodus of people and overshadowed the outlook for growth.

The financial centre’s economy shrank 4% in 1Q from a year earlier, breaking four quarters of growth, amid a weak performance in both domestic and external demand, the government said.