Hong Kong's economy shrinks by 8.9%; worst performance since 1974

Hong Kong's coronavirus-battered economy shrank by 8.9% over a year earlier in the first quarter, its worst performance since quarterly reporting began in 1974.

The government said Monday the Chinese territory's economy already was struggling before the pandemic due to weak global trade and anti-government protests that began in June and depressed tourism.

Exports fell 9.7% in the first quarter from a year earlier, the government reported. Exports of services plunged 37.8% and consumer spending declined 10.2%.

Even though virus cases might be subsiding, trade tensions are heating up again and protests are resuming, said Iris Pang of ING.

A longer recession is expected, said Pang in the report.