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Hong Kong’s Third Quarter GDP Continued to Decline

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that the Census and Statistics Department of the Hong Kong Government just released the advance estimate of GDP for the third quarter of 2022. Compared with the same period last year, the real decline was 4.5 percent, while the decline in the second quarter was 1.3 percent. The Hong Kong government spokesman said that the decline in GDP was mainly due to the weak performance of external demand during the third quarter. For a year-over-year comparison, the total value of exports of goods recorded a real decline of 15.5 percent, which was worse than the 8.4 percent decline in the second quarter. Imports of goods fell by 16 percent in real terms in the third quarter after a 5.9 percent drop in the second quarter of this year. The seasonally adjusted GDP for consecutive quarters fell by 2.6 percent in real terms in the third quarter compared to the second quarter. The deterioration of the external environment and the continued obstruction of cross-border land freight traffic have dealt a serious blow to Hong Kong’s exports. Significant interest rate hikes by major central banks tightened financial conditions and weighed heavily on local demand. Looking ahead, the government spokesman said that a marked deterioration in the external environment will continue to put significant pressure on Hong Kong’s export performance for the rest of the year. Geopolitical tensions and the Covid development will also increase downside risks.

Source: Sina, October 31, 2022