Last updated on November 1, 2019
Hong Kong on Thursday confirmed it had escalated to its first recession since the worldwide financial crisis as weeks of seething pro-democracy protests along with the US-China trade warfare exact a significant toll on the bank.
The semi-autonomous Chinese town was upended by almost five months of enormous, frequently violent, and pro-democracy demonstrations with very little end in sight as Beijing and town leaders embrace a hardline strategy.
The unrest has struck on the town’s tourist and entertainment sectors challenging, compounding economic woes that were already being due to the worldwide trade war.
Statistics published by the authorities on Thursday revealed gross domestic product dropped 3.2 percent in the third quarter compared with the last period, as it saw that a 0.4 percent fall.
That means that the city is undergoing a technical recession, together with just two back-to-back amounts of contraction.
It’s the first time that the city has seen a recession because early 2009 in the height of its fiscal crisis.
Hong Kong’s market was facing powerful headwinds at the beginning of 2019 since it had been struck by the US-China trade warfare, battering a town that’s hugely reliant upon the planet’s two biggest markets.
In the first quarter that the town was growing in a lackluster 0.6 percentage.
However, the protests that erupted in June just made things worse, beating the tourism, entertainment and leisure businesses as guest numbers plummeted.