Protests and trade tensions hurt Hong Kong’s economy
19/08/2019
Official figures show that Hong Kong’s economy shrank by 0.4% in the second quarter of 2019, which included one month, June, during which there were disturbances. The unrest has continued throughout July and August, with protests on the streets and at the airport, leading to airport closures, the resignation of the chief executive of airline Cathay Pacific and a decline in visitors and shoppers.
Officials have warned that the third quarter, spanning July, August and September, may also show a fall in Hong Kong’s economy, pointing out that two consecutive quarters of decline will mean the territory is official in a recession.
Another factor that has hurt Hong Kong’s economy is the ongoing trade dispute between China and the US. Presenting the figures for the second quarter, government economist Andrew Au said the intensifying trade war were one of the reasons for economy’s poor performance.
Mr Au went on to say that “social incidents” had also contributed by causing disruption to inbound tourism and consumer spending. In comments before the official figures became public, Ms Lam also made a connection between the unrest and a downturn in the economy.
Chairman of the Hong Kong General Chamber of Commerce, Aron Harilela, has told the South China Morning Post: “Many of our members have been telling us the US-China trade dispute and local demonstrations are starting to bite into their bottom line.”
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