Hong Kong is in “technical recession” as violence increases
Visitor numbers and retail sales fall as pro-democracy demonstrations continue
The city of Hong Kong is in a “technical recession” after the International Monetary Fund (IMF) downgraded its 2019 GDP growth forecast.
The IMF figures downgraded growth from 2.7 per cent in April to 0.3 per cent. Retail sales in the city fell by almost a quarter during August, the largest drop on record.
Increased violence in the city is having an impact on the economy in Hong Kong. Visitor numbers have dropped by 40 per cent thanks to increased violence and chief executive Carrie Lam was forced to halt her annual policy speech on Wednesday after calls for her resignation from pro-democracy demonstrators.
Lame had been announcing ways to reduce waiting times for public housing access, annual grants for students, better public transport subsidies and easier access to the mainland market. Back in August, the financial secretary Paul Chan announced a $2.4bn (£1.9bn) stimulus package to help strengthen the economy.
The yuan fell after Beijing criticised new US legislation backing pro-democracy protests in the city.