Hong Kong’s economy grew in the first quarter of this year, the territory’s leader said yesterday, ending a disastrous year-long spell in which it was effectively closed for business over COVID-19 restrictions.
The territory’s first-quarter GDP grew 2.7 percent year-on-year, reversing contractions in the previous four quarters, including a 4.2 percent drop in the last stretch of last year, Hong Kong Chief Executive John Lee (李家超) said.
“A series of large-scale promotional events have boosted tourism and consumption, and improved the economy,” Lee told a press briefing. “As the mainland economy continues to grow at a fast pace and local aviation capacity speeds up its recovery, I believe Hong Kong’s economy in the second quarter will be better than that of the first.”
Photo: AFP
Last year, a series of restrictions on travel and social gatherings saw chunks of Hong Kong’s economy shut down and its exports dwindle, leading to a drop in GDP in all four quarters.
At the beginning of this year, Hong Kong Financial Secretary Paul Chan (陳茂波) unveiled a US$97 billion budget aimed at resuscitating the territory’s fortunes.
The revival measures included handouts for more than 6 million people, a series of tax breaks and welfare allowances, as well as a new campaign to revive tourism.
Hong Kong entered a deepening recession in 2019 and 2020 after the former British colony was rocked by pro-democracy protests and the beginning of the COVID-19 pandemic.
The territory found brief respite in 2021, as its strict COVID-19 controls largely kept it virus-free, with the economy rebounding 6.4 percent — gains later wiped out by last year’s outbreak.
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