Hong Kong GDP falls more than expected as COVID curbs bite

Hong Kong’s economy contracted last quarter for the first time in more than a year as local restrictions to curb Covid hit activity and China’s own omicron outbreak disrupted trade. Gross domestic product fell 4% in the January-to-March period from a year earlier, according to advance estimates released by the government on Tuesday. The number — Hong Kong’s first since the end of 2020 — was far worse than a median estimate of a 1.3% contraction in a Bloomberg survey. It was also the biggest contraction since the third quarter of 2020. The city faced “immense pressure” in the first quarter of 2022, a government spokesperson was quoted as saying in a release from the Census and Statistics Department accompanying the data. The city’s fifth coronavirus wave, along with moderating global demand growth and “epidemic-induced cross boundary transportation disruptions,” all dragged on the economy, the person said.