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Hong Kong Q1 GDP shrinks 4.3 pct qtr/qtr

Published 05/15/2009, 04:37 AM
Updated 05/15/2009, 04:40 AM

HONG KONG, May 15 (Reuters) - Hong Kong's economic recession deepened in the first three months of 2009 as GDP shrank by a much worse-than-expected 4.3 percent, seasonally adjusted, from the previous quarter.

Compared with a year ago, first-quarter gross domestic product fell 7.8 percent, government data showed on Friday, worse than a forecast 5.2 percent decline.

The weak performance prompted the government to revise its full-year GDP forecast. It said it now expects the economy to shrink by 5.5 to 6.5 percent this year, compared with a previous forecast for a 2 to 3 percent contraction.

The first-quarter data places Hong Kong alongside regional neighbours Singapore, New Zealand and Japan in reporting four consecutive quarters of falling GDP.

Consumption and investment were depressed by rising unemployment and plunging exports amid weak global demand. (Reporting by Fion Li, Sui-Lee Wee and Christina Lo, Editing by Ken Wills) (susan.fenton@thomsonreuters.com; +852 2843 6367; Reuters Messaging: susan.fenton.thomsonreuters.com@reuters.net)

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