Hong Kong in first recession for a decade amid protests

November 15, 2019 by No Comments


Protestors in Hong KongImage copyright

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Anti-government protests in Hong Kong started five months ago

Hong Kong has entered its first recession in a decade as the territory continues to be gripped by anti-government protests.

Its economy shrank 3.2% in the three months to the end of September compared with the prior quarter.

It means the economy has contracted for two quarters in a row, which is the usual definition of a recession.

Tourists are staying away and shops are suffering after months of confrontation between protesters and police.

Compared with a year ago, Hong Kong’s economy was 2.9% smaller in the third quarter of the year.

Hong Kong’s protests started in June after the government planned to pass a bill that would allow suspects to be extradited to mainland China.

Many feared this bill would undermine the city’s freedoms and judicial independence.

The bill was eventually withdrawn but the protests continued, having evolved into a broader revolt against the police, and the way Hong Kong is administered by Beijing.

Protests have taken place every weekend over the past few months, causing widespread disruption.