Hong Kong's gross domestic product (GDP) shrank 4 percent year on year in the first quarter, official data showed on Friday, as the epidemic wave weighed in on economic activities.

Given the worse-than-expected performance in the first three months of 2022, the government of Hong Kong Special Administrative Region (SAR) has downgraded its full-year GDP growth forecast from 2-3.5 percent to 1-2 percent, according to a press release.

Total exports of goods fell by 4.5 percent year on year in the January-March period, the Hong Kong SAR government said.

"Looking forward, the worsened global economic prospects may continue to weigh on Hong Kong's export performance," it said. "Nonetheless, cross-boundary transportation disruptions between the Chinese mainland and Hong Kong may gradually ease alongside the improving local epidemic situation, thus providing some relief to our external trade."