Hong Kong’s economy in the fourth quarter of 2021 grew 4.8% year-on-year, and rose 6.4% for 2021 as a whole, reversing the declines in the previous two years.

The Census & Statistics Department announced the figures today as it released the advance estimates on Gross Domestic Product (GDP) for the fourth quarter and the whole year of 2021.

According to the estimates, private consumption expenditure increased 6% in real terms in the fourth quarter of 2021 over a year earlier and rose 5.7% for the whole year.

Government consumption expenditure climbed 4.1% year-on-year and grew 4.6% for 2021 as a whole.

Gross domestic fixed capital formation increased marginally by 0.1% year-on-year, but expanded 10.1% in the whole of 2021.

Over the same period, total goods exports and imports surged 13.3% and 9.7% from a year earlier. For 2021, total goods exports and imports grew 19% and 17.5%.

Compared with a year earlier, exports of services increased 5.7% for the fourth quarter while imports went up 5.2%. For 2021 in full, exports and imports of services rose 0.8% and 1.9%.

Commenting on the figures, the Government said Hong Kong’s economy had recovered further in the fourth quarter of 2021 because of the robust export performance and improved private consumption.

Looking ahead, the city’s economy is expected to expand further this year, with the pace subject to uncertainties such as those relating to the local COVID-19 situation. The latest wave of the virus and the tightened anti-epidemic measures have also posed renewed pressures on economic activities and weighed on sentiment.

It is essential for the community to work with the Government to contain the epidemic.

Meanwhile, the global economic recovery, which should render further support to Hong Kong’s exports, is envisaged to slow in 2022. High inflation in some major economies may persist longer as a result of supply bottlenecks amid the evolving pandemic.

While this development would increase pressure on local inflation, it could at the same time lead to a faster pace of monetary policy tightening by major central banks, with possible impacts on the global economy and financial market volatility.

The revised GDP figures for the fourth quarter of 2021 and the whole year will be released on February 23 when the 2022-23 Budget is announced, the Government added.