Hong Kong goes into deep recession amid protests
Hong Kong has plunged into deep recession after its economy was hit by a series of violent street protests and the US-China trade war, reports The Guardian Online.
The economy draws slower by 3.2% in the three months to September as a loss of exports was made by a collapse in consumer spending and a loss of revenue from tourists.
The third-quarter contraction followed a 0.5% drop in gross domestic product in the three months to June may be prolonged and may cause permanent damage to Hong Kong’s reputation as a place to do business.
Iris Pang, China economist with ING bank says that it’s a real recession, not just a technical one. Formally, two consecutive quarters of negative growth constitute a technical recession. However, in this case, the Hing Kong recession is expected to move into 2020, possibly spreading throughout the year.
The Guardian reported that “protracted anti-government street protests have seen tourist arrivals to Hong Kong drop by a third, and with shops shuttered and roads blocked, retail sales have plummeted. Business confidence has been affected and investment has dried up.”
This slump meant Hong Kong’s annual growth rate fell from +0.5% to - 2.9%.
By Jude Chukwuemeka