Hong Kong Confirms 2nd GDP Contraction
The Hong Kong economy contracted 2.9 percent year-on-year in the last quarter of 2019, following a 2.8 percent fall in the previous period, in line with preliminary estimates but against market expectations of a 3 percent slump. It was the second straight annual decline in GDP due to weak domestic and external demand amid violent anti-government protests and the US-China trade war. Final estimates showed private spending decreased 2.9 percent, gross fixed capital formation slumped 16.7 percent, exports and imports went down 2.7 percent and 7.3 percent, respectively. On the other hand, government spending rose 6 percent. On a seasonally quarterly basis, the GDP shrank 0.3 percent, below preliminary estimates of a 0.4 percent contraction. It was the third-straight quarterly decline, keeping the economy in a technical recession. For 2019 as a whole, the GDP contracted 1.2 percent, the first annual decline since 2009, and after a 2.9 percent advance in 2018.
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