Hong Kong economy shrinks 7.8%

"Hong Kong economy shrinks 7.8% | AboutHK.Com - more information about HK"

Hong Kong economy shrank by 7.8% in the first three months of this year compared with the previous year, as exports fell during the global downturn. This is the worst economic performance since the Asian financial crisis more than a decade ago. The territory of the government now forecasts GDP to contract between 5.5% -6.5% this year, compared with its previous forecast of 2% -3% decline. Recovery depends on the global economy, analysts said. "Severe Crisis" "I anticipate that Hong Kong's economic performance in the second quarter will remain difficult," the area of financial secretary John Tsang said. Hong Kong exports fell by 22% during the quarter and the economic recovery depends on how quickly the world economy picks up, analysts said. "The figure is worse than expected. It tells you how a severe global financial crisis can affect a healthy, small and open economy," said Dong Tao at Credit Suisse. "Will Hong Kong see a further deterioration? It is not up to Hong Kong, it is up to the rest of the world, especially the US, China and the financial markets." Comments Please login to post comments or replies.