HK government revises down 2019 GDP to decline 1.3%

    The HK Government today released the revised figures on Gross Domestic Product (GDP) for the third quarter of 2019.
  After growing mildly by 0.4% in the second quarter, the economy contracted by 2.9% in the third quarter from a year earlier, marking its first year-on-year decline since the Great Recession of 2009.
  On a seasonally adjusted quarter-to-quarter comparison, real GDP contracted significantly by 3.2% in the third quarter after a 0.5% decline in the preceding quarter, indicating that the economy has entered a recession. 
  Looking ahead, the Government believes the difficult external environment is likely to persist in the near term. Recent economic data point to the continuation of a synchronised growth slowdown in the major economies.
  Yet, US-China trade tensions have eased somewhat of late, as negotiations are underway for sealing a first-phase trade agreement. While trade relations may tend to stabilise for the time being, uncertainties remain given that differences in some key issues have yet to be resolved.
  Considering the actual outturn of a 0.6% contraction in the first three quarters of 2019 and the persistent notable downward pressures, the real GDP growth forecast for the year as a whole was revised downwards from 0 to 1% as announced in the August round of review to -1.3% in the current round.