Hong Kong confirmed Monday the country plunged into a recession in 2019, suffering its first annual contraction in a decade, after falling under the twin pressures of the US-China trade war and months of pro-democracy protests. China’s coronavirus outbreak is now adding to the economic pressure.
Government data released Monday showed Hong Kong’s Gross Domestic Product in 2019 contracted by 1.2% on-year.
FILE - A salesman waits for customers at a cosmetic shop in a shopping district in Hong Kong, Oct. 30, 2019.
In the three months ending in December, the economy shrank 2.9% on-year, the third straight quarter of declines. The government said earlier Hong Kong fell into recession after activity contracted by 2.8% in the three months ending in September.
2019 was the worst for Hong Kong’s growth since 2009. The trade war between Beijing and Washington hit the export-heavy economy hard and protests that began in June over a proposed extradition law took a heavy toll on consumption and tourism.
Though the protests have been less intense so far this year, economists say the coronavirus outbreak is now emerging as a new economic threat. China’s coronavirus outbreak is prompting the territory and other governments to impose travel curbs that have disrupted business.“
FILE - Elderly men sit at a park wearing face masks in Hong Kong, Jan. 30, 2020.
The coronavirus outbreak will probably keep the city in recession for a while longer,” Capital Economics wrote in a note to clients after the GDP figures were released.
The Hong Kong government said in a statement, “The outlook for the Hong Kong economy in 2020 is subject to high uncertainties.”