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Hong Kong enters recession: Here is what has happened so far

“The blow (from the protests) to our economy is comprehensive,” Paul Chan, Hong Kong's Financial Secretary, said in a blog post.

October 29, 2019 / 04:14 PM IST

After seeing two quarters of a decline in growth, Hong Kong has entered recession, its first since the global financial crisis in 2008.

The Asian financial hub has seen five months of violent anti-government protests, which had begun over a controversial extradition bill between Hong Kong and China.

“The blow (from the protests) to our economy is comprehensive,” Paul Chan, Hong Kong's Financial Secretary, said in a blog post.

Chan said it would be difficult to achieve the government's full-year growth target of 0-1 percent for 2019.

The government will “tackle the violence head on”, Hong Kong leader Carrie Lam said.

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Hong Kong’s economy has also been hurt by the US China trade war and the economic slowdown in China.

"Let citizens return to normal life, let industry and commerce operate normally, and create more space for rational dialogue," Chan said in the blog post.

Here are some more recent developments related to Hong Kong’s economy:

– Lam on October 29 said that the city had injected over HK$20 billion (about $2.6 billion) into the economy and added that the government would take more relief measures.

– The government earlier in October announced a number of measures to address the problem of unaffordable housing.

– The Hang Seng index closed 0.39 percent lower on October 29, erasing earlier gains. This was due to the profit taking seen after the warnings about the economy’s condition.

– The number of tourists declined 50 percent in October, Chan said.

– Hong Kong’s richest man Li Ka-shing on October 4 said he would donate HK$1 billion ($128 million) to support local small and medium sized businesses.

– Shops, restaurants and hotels have been forced to be closed for a few days over the past few months as footfall lowers in protest-hit areas.

– The worsening economic conditions and drop in property prices could hurt Hong Kong’s banks and end its reputation as a 'safe haven' for customers’ savings, JPMorgan Chase & Co said.



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Moneycontrol News
Tags: #Hong Kong
first published: Oct 29, 2019 04:14 pm
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