Fitch lowers Hong Kong’s 2022 growth forecast amid omicron variant

Rating agency revises forecast to 1.5% from 3%

By Ovunc Kutlu

ANKARA (AA) - Fitch Ratings announced Wednesday it lowered Hong Kong’s 2022 economic growth forecast because of the omicron outbreak.

"The Hong Kong government’s decision to further tighten social distancing measures to curb a rapidly growing outbreak of the omicron variant of COVID-19 adds downward pressure on this year’s growth forecast," it said in a statement.

The global rating agency revised its 2022 gross domestic product (GDP) growth forecast for Hong Kong to 1.5%, down from its previous estimate of 3%.

"Our revised growth projections imply that real GDP will not surpass its 2018 level -- prior to both the onset of anti-government protests and the pandemic -- until 2023," it said.

"The latest restrictions on gatherings and entertainment venues are the strictest imposed on Hong Kong's businesses and residents since mid-2020, before the availability of COVID-19 vaccines, and include a prohibition on private gatherings of more than two households," it added.

After contracting 6.1% in 2020 due to the pandemic, Hong Kong's GDP rebounded 6.4% in 2021.

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