2021’s First Quarter Sees an Expansion of 7.8%
The Hong Kong economy received some welcome news today when it was announced that the first quarter of 2021 saw an expansion of 7.8% in Gross Domestic Product (GDP).
The expansion is a mark of the very strong goods export growth amidst the global economic recovery that countries around the world are going through. The recovery is led mainly by Mainland China and the United States. This expansion means the end of Hong Kong’s six-quarter contraction streak.
COVID-19 Still Weights Heavy in Certain Sectors
Despite the 7.8% growth in Hong Kong’s economy in the first quarter of this year, certain sectors continue to feel the impact of the COVID-19 pandemic. Especially when social distancing measures continue to remain in place. This is particularly apparent in sectors where businesses need to deal directly with consumers.
The Q1 economy must also factor in the fact that tourism is still not where it should be at this stage. To fully rebound from the effects of the pandemic, the Hong Kong community must do its part to ensure the epidemic remains under control. One way is by ensuring the success of the COVID-19 Vaccination Programme.
If the program achieves success, it will pave the way for the economy to gradually resume on an international level. In the near term, the strong performance by the Mainland and the United States means good news for Hong Kong’s goods export.
Keeping the Epidemic Contained Is the Key to Success
The 7.8% growth in Hong Kong’s Q1 is just the beginning. If the right support is given via the various relief measures implemented by the government, the future looks optimistic. Even more so as global economic conditions continue to improve. Once business and consumer confidence resumes, Hong Kong can look forward to even broader-based improvement for the later part of 2021.