Hong Kong recession to hit the auto sectorJune 1st, 2016
There is a possibility that Hong Kong’s economic recession may be hitting the auto sector hard. Hong Kong looks headed for recession with an economy that contracted 0.40 percent on quarter in the three months to March 2016, compared to 0.2 percent growth in the previous period. It was the first contraction since the second quarter of 2014 and the biggest since 2011. Hong Kong’s economy is heavily dependent on exports and slumping tourism and merchandise trade has negatively affected growth.
How will a recession affect HK’s new car sales and imports? New car registration figures from the HK Ministry of Transport to April 2016 show there has been little growth and in some cases a small decrease in new car registrations – we would investigate these figures further, talking to local distributors and experts to provide analysis on the impact a recession could have on consumer sentiment and spending, as well as projections for imports should the recession prove lengthy.