A first for ten years. In the midst of a trade war with the United States, and a deep political crisis, Hong Kong's economy entered recession in the third quarter, authorities said Thursday (October 31st).
The gross domestic product (GDP) of the semi-autonomous region fell 3.2% in the third quarter, following a 0.4% decline in the previous three months.
Since June, the former British colony is experiencing its worst political crisis since its handover in 1997 to China. Pro-democracy protesters carry out almost daily actions to demand democratic reforms and denounce Beijing's growing influence over the city's affairs.
Tourism and commerce, affected
This challenge tends more and more to degenerate into clashes between police and radical protesters who sometimes commit acts of widespread vandalism against companies accused of playing the game of the local executive and China.
The reputation for stability and security, for which Hong Kong was previously recognized, is undermined. A situation that mainly affects tourism, retail and the entertainment industry.
A first since the global financial crisis
The sequence of two consecutive quarters of declining GDP means that the territory is in a technical recession. A first since 2009, when activity had contracted under the impact of the global financial crisis.
But even before the start of the protest movement, the city had been battered by the repercussions of the Sino-US trade war. However, the Hong Kong economy depends heavily on China and the United States.
Last week, Hong Kong Secretary of Finance Paul Chan warned that it was "very likely" that the city would end the year in recession.
With AFP