Twenty-one weeks of violent pro-democracy rallies have toppled one of the biggest economies in Asia, and Hong Kong now faces further contraction as the government announced the economy was in recession.
Hong Kong’s third quarter economic data have indicated that the territory experienced two straight quarters of contraction signalling Hong Kong has officially entered recession.
“The government will be announcing its advance estimates for the third quarter on Thursday,” wrote Hong Kong Financial Secretary Paul Chan Mo-po in his weekly blog. “After seeing negative growth in the second quarter, the situation continued in the third quarter, meaning our economy has entered technical recession.”
The IMF expects the territory’s GDP growth rate to fall around the 0.3 percent this year and projected a 1.5 percent growth in 2020, a steep decline from its original 2.9 percent growth estimate.
However, the financial secretary was openly pessimistic in his blog about any kind of growth for the rest of 2019 that could pull the economy out of its negative slide.
“It seems it will be extremely difficult for us to reach full-year economic growth of 0 to 1 per cent. I would not rule out the possibility that the full-year economic growth will be negative,” he wrote.
Protesters paralyzed the city over the weekend, blocking roads and battling police in popular tourist areas from Tsim Sha Tsui to Mong Kok yesterday