03 May 2021
Hong Kong posted its fastest growth since 2010, helping the metropolitan area recover from the impact of the coronavirus pandemic. The gross domestic product increased by 7.8% in the first quarter year-on-year, following a decline for a record six quarters.
In its latest reports, published on Monday, the data beat all expectations in a Bloomberg survey of economists and the quarter-on-quarter expansion was up by 5.3%. Tommy Wu, lead economist with Oxford Economics in Hong Kong said, “The strong first-quarter outturn does signal that the economy will recover faster than previously expected.”
Wu added on to point out that global trade and the ease on restrictions on travel and tourism will continue to boost Hong Kong’s GDP and economy.
Hong Kong had posted back-to-back annual contractions in 2019 and 2020, following issues with China, the trade war and the coronavirus pandemic.
The report said, “Looking ahead, the global economic recovery led by the mainland and the U.S. should bode well for Hong Kong’s exports of goods in the near term. Exports of services should likewise improve, though the revival of tourism-related activities will likely be slow in view of the still austere pandemic situation in many places around the world.”