Published 11:24 IST, October 28th 2019
Hong Kong in recession due to protests: Financial Secretary Paul Chan
Five-month-long anti-government protest in Hong Kong has created circumstances of recession, worst of all times and the economy is unlikely to recover this year
As the Hong Kong protest continues against the ‘One country, One system’ principle, the city has suffered a major economic downfall. The five-month-long anti-government protest in Hong Kong has created circumstances of recession, worst of all times and it is unlikely that the country will achieve any economic growth according to the Financial Secretary of Hong Kong.
Hong Kong hits a recession
In his blog, Paul Chan, the Financial Secretary of the city wrote on October 27 that the initial estimate for the third-quarter GDP which was recorded on October 24 two successive quarters suffering an economic downfall. The contraction in the economy marks the beginning of the recession. He further added that considering the present scenario it will be difficult for the government to even secure 0.1% economic growth which was forecasted before the anti-government protest began.
Increasing acts of violence
The protests in Hong Kong have entered their 21st week with increasing acts of violence. On Sunday the protesters with black-clad and masks burned down several shops and targeted the police with petrol bombs in response to tear gas, water cannon, and rubber bullets. The protesters have been marching through the streets and attacking small shops and businesses, especially those owned by Chinese companies. They even vandalized the city's metro system MTR Corp. The MTR declared that it will close two hours before the normal time on October 28, to undertake the damage repair. The MTR has been shutting early for part one week. Paul chan also said that there has been a decline in the number of Tourists visiting the city, considers it to be worst of all times. The number is down by 50 per cent in the month of October.
Call for rational dialogue
In his blog, the Financial Minister urged the protesters to cease and let the people return back to their normal life. He wrote that the industry and commerce have been hit badly by the Hong Kong protests and its time they start to operate normally. The government and the protesters with mutual consensus should engage in more rational dialogue which is the demand of the time.
The Hong Kong protesters are against the idea of ‘one country, one system’ which will restrict them from enjoying extensive freedom, not permitted in mainland China. Hong Kong will also lose its freedom to have an independent judiciary and the right to protest. The Chinese Foreign Ministry has warned other nations from interfering, considering it a matter of ‘internal affairs’. Chinses government has accused other nations of escalating the issue.
Updated 12:29 IST, October 28th 2019