HK economy contracts in Q1

Hong Kong

HONG KONG's economy unexpectedly contracted in the first quarter as falling retail sales and a weakening property market weigh on the city.

Gross domestic product fell 0.4 per cent in the three months through March from the previous quarter, the government said in a statement on Friday, compared with the median estimate for 0.1 per cent growth in a Bloomberg News survey. From a year earlier, the economy expanded 0.8 per cent, less than half the pace in October through December.