Hong Kong is entering technical recession and industries like tourism and retail are hurting.
The financial chief of Hong Kong warned Sunday, October 27th, that the city was heading towards negative economic growth for the full year. As he called on residents to set aside differences, the country is inevitably entering technical recession.
According to the South China Morning Post, Chief Executive Carrie Lam Cheng Yuet-ngor announced during early October through her policy address that Hong Kong had already slipped into a technical recession in the third quarter, after two consecutive quarters of economic contraction.
As months-long protests continue throughout the country, many industries have taken a big blow, and Hong Kong’s lucrative tourism industry has been one to be hurt the most, with inbound travelers decreasing by 50% in the first half of October compared to the same period last year. The retail sector has also taken a beating, with sales dropping by 25.3 per cent in August – the biggest year-on-year drop Hong Kong has ever seen. The government has already had to roll out HK$2 billion worth of relief measures to support workers and businesses.
Other reports mention that insurance claims related to arson, vandalism and loss of business due to anti-government protests may have reached nearly HK$600 million (US$76.5 million) – the third highest in Hong Kong’s history, surpassing the HK$325 million related to Sars (severe acute respiratory syndrome) in 2003.
The Hong Kong wealthy are also looking for a way out and Canada and Singapore are emerging as popular destinations to start over. Read more about this by clicking here.