BEIJING, Might 3, International Occasions – Hong Kong’s GDP noticed a rise of seven.Eight p.c within the first quarter this 12 months, considerably beating market expectations of round 3.7 p.c and ending six straight quarters of development decline, in keeping with knowledge launched by the federal government of the Hong Kong Particular Administration Area (HKSAR) on Monday.
“Hong Kong’s financial system recovered considerably within the first quarter of 2021, which needs to be attributed to the sturdy development of products exports underneath the worldwide financial restoration led by the Chinese language mainland and the US, ” an HKSAR authorities spokesman stated.
The 7.Eight p.c development was one of the best efficiency for the HKSAR financial system in 11 years and a major rebound from the two.Eight p.c contraction within the earlier quarter and a document 9.1percent decline within the first quarter final 12 months. It additionally marked the top of the longest recession for the HKSAR financial system.
The higher-than-expected knowledge on Monday additionally got here as residents within the HKSAR have a barely higher confidence within the metropolis’s financial outlook.
For the primary time up to now six years, fears of an financial recession have dropped from over 70 p.c to this 12 months’s 67.7 p.c, in keeping with a survey launched by the Chinese language College of Hong Kong on Monday on the present financial state of affairs and outlook in Hong Kong.
In the meantime, greater than 40 p.c of Hong Kong residents surveyed stated they have been “very anxious” or “anxious” about dropping theirs or their relations’ jobs amid the pandemic, whereas 46.Eight p.c stated they weren’t.
The financial restoration has been uneven, and general financial exercise stays beneath pre-recession ranges, because the pandemic continues to hit particular person segments of the financial system, stated the spokesperson, including that the worldwide financial restoration ought to profit Hong Kong’s exports within the brief time period.
Service exports must also enhance, though the restoration of tourism-related actions is predicted to be gradual given the lingering pandemic in lots of components of the world. Different danger components, corresponding to China-US relations and geopolitical tensions, are additionally value watching.
Earlier on Monday, Ma Xiaowei, director of the Nationwide Well being Fee, stated that the central authorities is monitoring Hong Kong’s coronavirus epidemic state of affairs carefully, and can help town to raise testing functionality, urging town to speed up vaccination and decrease native instances to zero to renew regular journey with the Chinese language mainland.
“In 2021, the affect of the pandemic on Hong Kong’s financial system is more likely to wane with the introduction of vaccination in Hong Kong and the strengthening of worldwide pandemic prevention and management, ” Wang Peng, an assistant professor at Renmin College of China, instructed the International Occasions.
By Sunday, a complete of 1.49 million doses of vaccine have been administered to the general public in Hong Kong, in keeping with knowledge from the HKSAR authorities.
“From a long-term perspective, there’s quite a lot of excellent news for Hong Kong’s financial growth in 2021, together with the development of China’s Guangdong-Hong Kong-Macao Better Bay Space, which can enter its quicker development stage in 2021, and thus will likely be extra favorable for insurance policies, ” stated Wang.
Leung Chun-ying, former chief government of the HKSAR, stated on Monday throughout a seminar that the alternatives that the 14th 5-Yr Plan 2021-25 will carry to Hong Kong within the subsequent 5 years could be the final for Hong Kong individuals, urging residents to hunt new companies underneath the plan.
Leung stated that some areas on the mainland which are thought-about to be distant and poor are growing higher than sure components of the HKSAR and that the Hong Kong society ought to examine and discover alternatives underneath the 5-Yr Plan.
To additional stabilize the financial system, the HKSAR handed the Appropriation Invoice 2021 on April 28, permitting a deficit finances of over HK$100 billion ($12.87 billion), in keeping with Hong Kong Monetary Secretary Paul Chan Mo-po on Sunday.
Chan stated in a weblog submit that following the passage of the invoice, supportive measures will likely be rolled out at full velocity to assist residents and companies to additional ease strain from epidemic prevention measures.