Several economists have downgraded their economic forecasts for Hong Kong as thecity experiences another wave of coronavirus infections, CNBC reports. On Wednesday, advance estimates showed the economy shrank by 9 percent in the second quarter compared with a year ago. Economists at consultancy Capital Economics forecast an 8 percent contraction in the Hong Kong economy this year — close to doubling their previous projection of a 4.5 percent contraction. In addition to Capital Economics, Citi also downgraded its forecast for Hong Kong and predicted a full-year economic contraction of 6.3 percent compared with 5.5 percent previously. “Coronavirus cases have increased in Hong Kong, and there could be many sources that are hard to trace,” she said.

Source: The Standard July 31, 2020 02:37 UTC