GDP shrinks 9% in Q2

Private consumption expenditure fell 14.2% during the period.

Hong Kong’s gross domestic product (GDP) dived 9% YoY in real terms in Q2 compared to a year earlier, extending the 9.1% YoY decrease recorded in Q1, according to data released by the Census & Statistics Department (C&SD).

On a quarterly basis, GDP dropped marginally by 0.1% in Q2 compared to Q1.

Private consumption expenditure fell 14.2% during the second quarter, further deteriorating from the 10.6% decline in the previous quarter.

Meanwhile, government consumption expenditure, measured in national accounts terms, expanded 9.8% over the same period to extend the 8.8% increase in Q1.

Gross domestic fixed capital formation (GDFCF) also recorded a decline of 21.4% in Q2, on the back of a 44.1% plunge in expenditure on machinery, equipment, and intellectual property plunged.

Expenditure on building and construction in GDFCF also shrunk 3.6%. Within this category, expenditure in building and construction in the private sector fell 10%, whereas those in the public sector jumped 14.2%.

Exports of services worsened significantly in Q2, dropping 46.1% compared to a year earlier, and a steeper decrease than Q1’s 37.4%. Imports of services also contracted 42.9% in real terms over the same period.