Hong Kong has confirmed it has entered its first recession for a decade as it continues to be gripped by protests. Its economy shrank 3.2% in the July-to-September period compared with the prior quarter, figures showed, confirming earlier preliminary data.
It means the economy has contracted for two quarters in a row, which is the usual definition of a recession. Tourists are staying away and shops are suffering amid battles between anti-government protesters and police.
“Domestic demand worsened significantly in the third quarter, as the local social incidents took a heavy toll on consumption-related activities and subdued economic prospects weighed on consumption and investment sentiment,” the government said in a statement.
It now expects the economy to shrink 1.3% for the full year.
“Ending violence and restoring calm are pivotal to the recovery of the economy. The government will continue to closely monitor the situation and introduce measures as necessary to support enterprises and safeguard,” the government added.