Recently released data has shown that the Hong Kong economy suffered its worst monthly downturn in five years as the territory continues to reel from the impact of the SARS virus.
PMI (Purchasing Managers Index) figures compiled by UK based research firm NTC reveal a staggering fall of 28.1% to 38.1% in April, which is the largest fall since the index began five years ago. The most severely affected sector according to NTC was retail, with construction and manufacturing also showing deep contraction.
Hong Kong has also witnessed a sharp drop in its employment levels which are declining at their fastest rate for seventeen years. Consequently, in the first quarter of 2003, the unemployment rate rose to 7.65%, and legislators warn that it could rise above 8% in the coming months.
The virus has devastated the jurisdiction's travel-related industries, with air passenger numbers down 60% on the back of the World Health Organisation's warning against non-essential travel to the jurisdiction. This led to 40% of flights being cancelled last month.
The NTC study revealed the Hong Kong economy is contracting at a faster rate than seen in the financial crisis of the late 1990s, when GDP decreased at 7% in the height of the crisis.
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