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8/12, 12:43 PM (Source: TeleTrader)
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HK enters recession as restrictions impair economy

Hong Kong said on Friday it has reduced its 2022 economic growth forecast down from 1-2% range to between -0.5% and 0.5%, citing damage caused by strict COVID-19 measures as well as global economic uncertainty.

"Looking forward, the markedly deteriorating external environment will weigh heavily on Hong Kong's export performance in the remainder of the year. Nonetheless, if cross-boundary logistics disruptions between the mainland and Hong Kong show more visible easing, Hong Kong's external trade may get some relief," government economist Adolph Leung told Nikkei Asia.

Hong Kong confirmed it entered recession after two negative quarters in the first half of the year, as the Chinese government continued applying its zero-COVID policy. Responding to the strict restrictions, Hong Kong's population declined by 1.6% over the past year, making the largest decline since 1961.

Baha Breaking News (BBN) / ND