Hong Kong: Recovering Gradually From Covid-19 Restrictions On the Back of Strong Policy Support

Watch the highlights of AMRO’s 2022 Annual Consultation Report on Hong Kong, China.

Following a strong 6.3 percent expansion last year, Hong Kong's GDP is expected to contract by 2.5 percent in 2022 before rebounding by 4.3 percent in 2023. After the heavy blow of the fifth wave of COVID-19 in Q1 2022, domestic demand gradually recovered in Q2 as infections subsided and social-distancing measures were gradually relaxed. Economic growth in 2023 will possibly be boosted by the current gradual relaxation of quarantine requirements for inbound visitors. Headline inflation is set to increase moderately to 2.0 percent in 2022 and 2.3 percent in 2023, reflecting the economic recovery and a pass-through of imported inflation.