Hong Kong economy grows less than expected as recession fears hit
Hong Kong’s economy grew less than expected at just 0.5 per cent year-on-year for the second quarter, the government revealed on Friday.
It comes amid growing tensions between the US and China as the trade war rumbles on and on the back of continued unrest in the financial hub, igniting fears it could tip into a recession.
Read more: Cathay Pacific boss steps down amid Hong Kong protests
The revised figure is the slowest economic expansion since the global financial crisis more than a decade ago and was down on an initial reading of 0.6 per cent, as well as the first quarter’s pace of 0.6 per cent.
The government also announced it would be slashing its full-year forecast to a range of 0-1 per cent, rather than the previously anticipated 2-3 per cent in the wake of the political unrest.
Months of protests and clashes between police and activists have resulted in Hong Kong becoming embroiled in its worst crisis since returning to Chinese rule in 1997.
As a result, tourists have cancelled bookings, with a number of flight delays and cancellations following protests at the airport this week.
Retailers are also forecasting a sharp drop in sales, while the stock market is tumbling too.
All of which is adding to pressure felt by China’s economic slowdown – a result of the ongoing trade war with the US.