Hong Kong's economy forecast to shrink 1.3pc for the year
THE Hong Kong government has warned that the city's economy could suffer its first contraction since 2009 as it further cut its GDP forecast for the year to negative 1
THE Hong Kong government has warned that the city's economy could suffer its first contraction since 2009 as it further cut its GDP forecast for the year to negative 1.3 per cent, down from its estimate in August of GDP growth of between 0 and 1 per cent.
Government economist Andrew Au said the nonstop anti-government protests over the past five months have hit multiple sectors of the economy.
'Domestically, the local social incidents, with intensifying violence in the past few months, have kept visitors away, taken a heavy toll on consumption demand, and seriously dampened investor sentiment,' he said.
He noted that recent surveys show business sentiment has turned 'very pessimistic', as recent protests have been getting worse, and there are no signs that they will stop anytime soon.
The economy shrank by 3.2 per cent in July-September from the previous quarter on a seasonally adjusted basis, revised government data showed, in line with a preliminary reading.
GDP contracted for the second consecutive quarter, meeting the technical definition of a recession.
'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,' Mr Au said.