Hong Kong’s GDP grew by a modest 0.2 percent quarter-over-quarter in the fourth quarter, according to Oxford Economics. Domestic demand has been resilient despite a prolonged wave of local COVID-19 outbreak, while goods exports improved. For full-year 2020, Hong Kong’s GDP contracted 6.1 percent after declining 1.2 percent in 2019.
Significant downward pressures are looming as business closures and unemployment could all rise more than expected in coming months. Factoring in some of these risks, Oxford Economics will revise down its 2021 Hong Kong GDP growth forecast to around 4 percent.
In year-on-year terms, Hong Kong’s GDP contracted 3 percent in the fourth quarter. Private consumption fell 7.6 percent. It is estimated to grow 0.9 percent quarter-over-quarter despite a resurgence of COVID-19. Capital investment increased 2.6 percent year-over-year, reversing the declining trend over the past two years. Government consumption remained supportive, growing 5.6 pe
