, Singapore
119 view s
Photo by Manson Yim on Unsplash

Economy to contract by 0.7% in 2022: forecast

The GDP outlook got downgraded amidst a deteriorating external environment.

Experts no longer expect Hong Kong's economy to expand by 1.3% in 2022 after GDP contracted by 2.6% YoY in 1H22.

UOB now forecast that the city's full-year GDP will contract by 0.7% YoY.

Apart from the decline in the 1H22 GDP, UOB said it also considered the deteriorating external environment when it downgraded its forecast for Hong Kong.

"Hong Kong’s economy is not out of the woods yet. Despite a shortened mandatory quarantine, the recovery in tourism is expected to remain weak in 2H22," said UOB.

"Private consumption may receive a temporary boost from Phase II of the consumption vouchers disbursement in August, but overall demand will be dampened by rising interest rates and uncertainties in the Mainland," the expert added.

In the short term, however, UOB said GDP will return to growth.

In Q3 and Q4, it expects GDP to expand by 0.7% YoY and 1.8% YoY, respectively.

Follow the link for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!