Hong Kong’s gross domestic product fell 4 per cent year-on-year (yoy) in Q1 2022, advance estimates released by the government showed. Retail sales in the territory suffered double-digit declines from a year ago in each of February and March.

Earlier this year, the territory was hit hard by the Omicron-driven wave of the Covid-pandemic, which led to the health system being stretched to its limits and a spike in the number of deaths.

The territory’s pursuit of eliminating Covid with tough border restrictions have led to some people and businesses leaving Hong Kong.