HONG KONG, June 29, 2022 /PRNewswire/ -- According to the latest macro-economic data (as of 1 June 2022) and the unemployment rate (provisional figures) released on 17 June 2022, NOVA announces the latest estimated bankruptcy rate for the next 12 months at 0.185%. Based on the 5.6 million HK credit-eligible population, the estimated number of bankruptcy is about 10,472, which is slightly more than 7,197, the number of bankruptcy petitions in 2021 recorded by the Official Receiver's Office throughout the year.
Calculation of this estimated bankruptcy rate is based on the latest macro-economic data in recent months, during the fifth wave of the epidemic in Hong Kong, two important indicators—the unemployment rate and gross domestic product (GDP) were significantly adversely 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. The GDP in the first quarter of 2022 fell by 9.77% from the fourth quarter of 2021. The latest figure is 6,726.17 million HKD, decreased 4.0% year-on-year. Personal Consumption Expenditure (PCE), an important consumption factor for GDP, also fell 13.73% quarter-on-quarter.
Meanwhile, the unemployment rate rise from 3.9% where is the lowest point in the past six months in November 2021 - January 2022 to 5.4% in February - April 2022, then fall slightly to 5.1% in the latest March – May 2022.
It is expected that economic in Hong Kong to resume normalcy under a stable epidemic situation while continue to adjust the social distancing measures in a timely manner according to Paul Chan, the Financial Secretary of Hong Kong, told a Legislative Council panel on 6 June 2022.
We will continuously monitor the macro-economic environment and its impact on the number of bankruptcy cases accordingly, leverage innovative technology for sharing valuable findings with the banking sector for making more accurate and timely business decisions.
About Nova Credit
Nova Credit Limited is a credit reference agency (CRA) established under the framework of The Personal Data (Privacy) Ordinance of Hong Kong in 2017. Nova Credit is one of the selected CRA that participates in the Multiple Credit Reference Agencies Model ("MCRA Model") initiated by the Hong Kong Association of Banks, the Hong Kong Association of Restricted Licence Banks and Deposit-Taking Companies and Hong Kong S.A.R. Licensed Money Lenders Association Ltd and supported by the Hong Kong Monetary Authority. Nova Credit aims to provide innovative credit reference service to consumers and small and medium-sized enterprises via emerging high-end technology and professional credit reference expertise. Moreover, Nova Credit acts as Fintech enabler for the financial industry, so that financial institutions can fully benefit from state-of-the-art credit & risk technology and smart data analytics. Nova Credit is 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 legitimate and seamless access to financial data. For more details, please visit www.nova-credit.com.
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