HONG KONG, June 29, 2022 /PRNewswire/ — According to the latest macroeconomic data (at June 1, 2022) and the unemployment rate (provisional figures) published on June 17, 2022, NOVA announces the latest estimated bankruptcy rate for the next 12 months at 0.185%. Based on the 5.6 million HK eligible for the credit, the estimated number of bankruptcies is about 10,472, which is just over 7,197, the number of bankruptcy filings in 2021 recorded by the Official Trustee’s Office during all year.
The calculation of this estimated bankruptcy rate is based on the latest macroeconomic data from the last few months, during the fifth wave of the epidemic in Hong KongTwo important indicators: the unemployment rate and the gross domestic product (GDP) were significantly negatively affected.
Undoubtedly, the tightening of anti-epidemic measures has seriously impacted the local economy. The local economy deteriorated significantly in the first quarter of 2022. GDP in the first quarter of 2022 fell by 9.77% from the fourth quarter of 2021. The latest figure is HK$6,726.17 million, decreased by 4.0% year-on-year. Personal Consumption Expenditure (PCE), an important consumption factor for GDP, also fell by 13.73% quarter-on-quarter.
Meanwhile, the unemployment rate rises from 3.9% where it is the lowest point in the last six months in November 2021 – January 2022 to 5.4% in February – april 2022then it will drop slightly to 5.1% in the latest March – May 2022.
The economy is expected to Hong Kong to resume normality in a stable epidemic situation while continuing to adjust social distancing measures in a timely manner in accordance with Paul Chanthe financial secretary of Hong Kongtold a Legislative Council panel on June 6, 2022.
We will continuously monitor the macroeconomic environment and its impact on the number of bankruptcy cases accordingly, leveraging innovative technology to share valuable insights with the banking industry to make more accurate and timely business decisions.
On Nova Credit
Nova Credit Limited is a Credit Reference Agency (CRA) established under the Personal Data (Privacy) Ordinance of Hong Kong in 2017. Nova Credit is one of the selected CRAs participating in the Multiple Credit Reference Agencies Model (“MCRA Model”) initiated by the Hong Kong Banks Association, the Hong Kong Association of Restricted Licensed Banks and Depository Companies and the Money Lenders Licensed by the Hong Kong SAR Association Ltd and endorsed by the Hong Kong Monetary Authority. Nova Credit aims to provide an innovative credit reference service to consumers and small and medium-sized businesses through high-end emerging technology and professional credit reference expertise. It’s more, Nova Credit acts as a fintech enabler for the financial industry so that financial institutions can fully benefit from next-generation credit and risk technology and intelligent data analytics. Nova Credit Are you ready to take the credit bureau service in Hong Kong to the next level by contributing to the development of the Greater Bay Area and connecting other CRAs and financial infrastructure in the region for seamless and legitimate access to financial data. For more details, visit www.nova-credit.com.
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SOURCE Nova Credit Limited