The Hong Kong government announced Wednesday that the economy has deepened its recession during the second quarter of 2020 due to the negative repercussions of the Coronavirus, as well as the political and economic instability in Hong Kong.
Hong Kong’s economy contracted by 9.0% in the second quarter of the year, according to the GDP, after the previous reading was revised to witness a contraction of 9.1%, as the Corona pandemic greatly affected consumer spending, trade and tourism.
This is the economic contraction for a fourth consecutive quarter, as the economy was hit hard by anti-government protests in the past year, alongside the recent shock of the global health crisis.
The GDP reading during the second quarter witnessed a slight improvement from the previous contraction of 9.1% in the quarter from January to March, which was considered the worst quarterly contraction since records began in 1974.
Moody’s credit rating agency expected the Hong Kong economy to shrink by 11.9%.
On a seasonally adjusted quarterly basis, however, the economy contracted only by 0.1%, compared to the revised contraction of 5.5% in the previous three months.