Hong Kong is facing the worst economic outcome since the Asian financial crisis, as a result of the widespread economic devastation from the coronavirus pandemic, a macro economic survey predicts.
The Hong Kong Institute of Economics and Business Strategy at the University of Hong Kong, predicted today the economy will contract by 3 percent this year. Economists revised the city's gross domestic product downwards by 3.4 percentage points, the largest decline since the 1998 Asian Financial Crisis.
Hong Kong’s domestic and external demand is expected to collapse in the first quarter, the survey predicts.
Hong Kong’s real gross domestic product is estimated to plunge by 8.3 percent in the first quarter, compared with the same period in 2019.
The unemployment rate is expected to worsen to 4.5 percent in the second quarter. Hong Kong will confront with difficult challenges amid the adverse economic conditions, the survey says.
The Hong Kong Macroeconomic Forecast is based on research y the APEC Studies Programme of the Hong Kong Institute of Economics and Business Strategy at HKU in the Faculty of Business and Economics.