Hong Kong Q3 GDP shrinks 3.2 percent, confirms depth of recession

ABS-CBN News

Posted at Nov 15 2019 05:51 PM

Tourists walk past riot police officers during a protest in Central district, Hong Kong, China, November 15, 2019. Athit Perawongmetha, Reuters

HONG KONG - Hong Kong confirmed on Friday its economy plunged into its first recession in a decade in the third quarter, weighed down by increasingly violent anti-government protests and the escalating US-China trade war.

The economy shrank by a seasonally adjusted 3.2 percent in July-September from the previous quarter, in line with a preliminary reading, revised government data showed. Gross domestic product (GDP) contracted for the second consecutive quarter, meeting the technical definition of a recession.

From a year earlier, the economy contracted 2.9 percent, the same as the preliminary drop. The readings were the weakest since the global financial crisis in 2008/2009.

Months of confrontation between police and protesters have plunged the financial and trading hub into its worst crisis since it reverted from British to Chinese rule in 1997.

Tourists are cancelling bookings, retailers are reeling from a sharp drop in sales and the stock market is faltering, adding to pressure the city is feeling from China's economic slowdown and the prolonged Sino-US trade dispute.