Hong Kong economy slows in Q2

HONG KONG, July 31 (AFP): Hong Kong's economy expanded by 1.5 per cent in the second quarter, data released Monday showed, indicating slowing growth after a robust start to the year.

Vast swathes of Hong Kong's economy were shut down in 2022 as the government grappled with a deadly Covid wave by imposing travel restrictions and banning large gatherings around the city.

After its reopening, the economy bounced back in the first quarter, growing by 2.7 per cent on year.

But the "momentum softened on the back of the strong rebound in the preceding quarter," a government spokesman said Monday in a statement.

Imports and exports posted double-digit declines over the period, decreasing by 16.1 per cent and 15.3 per cent respectively, the data showed.

Private household spending grew by 8.5 per cent, down from last quarter's 13 per cent increase.

Finance Secretary Paul Chan had warned in a blog posted Sunday that Hong Kong's economy "may be slightly slower" than the three months before.

He attributed the slowdown in household spending to changes in consumer habits after three years of pandemic living, but said the economy was still on track to improve.