Hong Kong’s GDP believed to have shrunk by 3% in just second half of 2019
One of the worst things that happen to any country’s economy when there are protests happening there is that the business suffers. Now, one of the cities which is currently facing relentless protests is Hong Kong which is a region administered by China. While China has kept Hong Kong autonomous with its ‘one china, two systems’ policy, we see that China has sent its forces to the city for controlling the protests. However, we are not going to go into the politics side of things because we are more interested in Hong Kong’s economy. It is seen that the protests in Hong Kong were taking place every weekend when it all started.
However, they have now shifted to happening almost every day disrupting normal life. And as a result, the economy of Hong Kong is suffering as well. Talking about the GDP or gross domestic product of Hong Kong, it is estimated that the figures have shrunk in the last half of 2019. The second half of 2019 is when the protests in Hong Kong started and they are still going on after six months. Obviously, this means that the effects of protests would reflect in the markets and estimates suggest that Hong Kong’s GDP shrunk by 3% in that period.
Also, we can see that there is no resolution of this issue as yet so we might see the GDP of Hong Kong suffering going forward in 2020 as well. Not only the protests taking place in Hong Kong, the US-China trade war is also expected to be the reason behind Kong Kong’s GDP decline. As per a prediction from market analyst, Hong Kong should brace for a stagnant economy and rising unemployment rate after the Lunar New Year as more businesses collapse. It looks like Hong Kong will go through a recession very soon and we hope that the situation gets better soon.