After falling to a record six quarters, economic growth has outpaced growing exports even due to weak spending.
Hong Kong’s economy showed its rapid growth in the first quarter over more than a decade, although the recovery is an uneven one driven largely by exports and weak consumer spending and a gradual vaccine rollout.
After declining to a record six quarters, gross domestic product rose 7.8% from a year earlier, advance data showed Monday, beating all estimates by economists in a Bloomberg survey. The figures were partially distorted by the lower base when the economy was on lockdown a year ago, but the quarterly-quarter expansion, a good reflection of the pace of growth, has surpassed.
The latest data shows an export sector that is booming but declining, which is declining. The city’s hotels and retail stores are dependent on tourism spending, especially from mainland visitors, and they have been hit hard by border closures. Low vaccination rates are hampering the city’s ability to reopen and fully recover from the epidemic.
“The opening of the border between Hong Kong and China and between Hong Kong and other foreign economies requires a high vaccination rate,” said Iris Pang, chief economist for Greater China at ING Bank NV.
Hong Kong has endured the most biennial expansion in its history, the city was at risk of political instability in 1990 and 2020, deteriorating US-China relations, and the situation continues. Covid 19 Worldwide.
The economy has recently shown signs of a strong recovery. HK র 400 billion (৫ 51.5 billion) in exports for the first time since March, the lowest unemployment rate since 2003, returning to a 17-year high. Retail sales with prices rose 30% in February, the first increase of this measure since January 2019.
The government will announce revised figures for the first quarter and the latest full-year growth expectations on May 14. Finance Secretary Paul Chan previously predicted that the economy would expand from 3.5% to 5.5% in 2021, but it is likely to recover.
Citigroup Inc. Its full-year growth forecast rose 2% to %%, while Goldman Sachs Group Inc. Economists have improved them from 4.6% to 9.2%.
On Monday, the government said in its report that economic activity was still below pre-recession levels as epidemics and social distance measures continued to focus on consumer spending and tourism. Although export demand will remain strong, the resumption of tourism-related activities is likely to be slow given the severe epidemic situation in many parts of the world.
“The gradual relaxation of social distance is good for domestic activities,” said Raymond Young, chief economist for Greater China at Australia and New Zealand Banking Group Limited. The government will maintain a strict stance on virus control measures. ”