【明報專訊】Hong Kong's economy has recorded shrinkage for two quarters in a row. The government has announced that, in the second quarter of this year, the GDP fell by 1.4% year-on-year. Although the decline was less steep than that in the first quarter, it was significantly worse than market expectations. The city's performance in foreign trade and exports was particularly lacklustre. While that was related to COVID-19 lockdowns on the mainland, which disrupted logistics and supply, it also had to do with the worsening inflation and economic downturn in Europe and the US. A new batch of consumption vouchers will soon be issued, which should go some way towards stimulating local consumption in the short term. However, in the face of economic sluggishness in Europe and the US and Western central banks' further tightening of monetary policies, the external headwinds are gaining strength. Hong Kong's economy will hardly be promising in the second half of the year. Apart from advancing the reopening of borders and straightening out technical factors that hinder logistics and entrepot trade, the government should at the same time consider countercyclical measures in the next stage as soon as possible so as to prepare for the recession in Europe and the US.