Saturday, 7 December 2019

Hong Kong in Recession after 5 Months of Demonstrations

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Laila Afifa

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  • Hong Kong Chief Executive Carrie Lam is seen on a screen as she reacts to protests by pro-democracy lawmakers, at the Legislative Council in Hong Kong, China, October 16, 2019. Lam was due to announce a raft of property initiatives in a bid to restore confidence in her administration after more than four months of anti-government protests. REUTERS/Tyrone Siu

    Hong Kong Chief Executive Carrie Lam is seen on a screen as she reacts to protests by pro-democracy lawmakers, at the Legislative Council in Hong Kong, China, October 16, 2019. Lam was due to announce a raft of property initiatives in a bid to restore confidence in her administration after more than four months of anti-government protests. REUTERS/Tyrone Siu

    TEMPO.CO, Jakarta - Hong Kong has fallen into recession after five months of demonstration that caused shops to close and public transportation to halt. An official data released on Thursday stated that Hong Kong's economy dropped 3.2 percent (YoY) in Q3/2019, far worse than economists had expected.

    In the absence of immediate resolutions to the crisis, Hong Kong's first recession in a decade can continue in 2020.

    Chief Executive Carrie Lam Cheng said at a business event on Thursday, Oct. 31, that the Hong Kong economy has "no room for optimism".

    Violent protests against the extradition bill, which has been withdrawn, have gripped the city since June. Angry protesters damaged MTR stations causing service disruptions, and destroyed shops that had links with mainland China.

    The latest data on October 31 also showed that the number of tourists visiting Hong Kong had plunged 34.2 percent (YoY) in September largely due to the ongoing protests. 

    TEMPO.CO