Hong Kong economy contracts 2.9% in fourth quarter
Source: Marketwatch
Hong Kong's economy shrank 2.9% compared with a year earlier in the fourth quarter, matching the advance estimate released earlier this month, government data showed Wednesday.
Fourth-quarter GDP fell 0.3% on a quarter-on-quarter seasonally adjusted basis, compared with the advance estimate of a 0.4% contraction, government data showed. That was the third-straight quarter it contracted from the quarter before, keeping the economy in a technical recession.
For two quarters, GDP has contracted compared with a year earlier because of local social incidents that "dealt a heavy blow to economic sentiment and consumption- and tourism-related activities," the government said in a statement.
Read more: https://www.marketwatch.com/story/hong-kong-economy-contracts-29-in-fourth-quarter-2020-02-26?mod=mw_latestnews
It bears repeating, Hong Kong is in recession: That was the third-straight quarter it contracted from the quarter before, keeping the economy in a technical recession. Technical recession? No that's the definition of a recession and 2.9% in one quarter is substantial. Hong Kong's economy is contracting. Add Covid-19 to the mix won't help matters any and you can just imagine that there will be a domino affect for job losses and consumer economic hardship.
msongs
(67,421 posts)Warpy
(111,286 posts)per a friend who is able to post through the bowels of a site that shall remain nameless. That hasn't stopped panic buying of all disinfectants, masks, gloves, and other protective gear. She mentioned cops in full hazmat gear, I told her that would last until May, it's miserable in hot weather.
The economic difficulties might be partially due to quarantine, but that's only been for a couple of weeks. More likely it's due to Carrie Lamm's hamfistedness and the resulting protests. Nothing puts a damper on business like riots and teargas.
Some embarrassing material was leaked on Lamm, speculation is that Beijing has had enough of her antics, although they usually prefer to leak sex scandal or financial shenanigans. This was just stupidity, but I guess they'll go with what they can get. No one is optimistic that her replacement will be any better.
muriel_volestrangler
(101,322 posts)...
"Hong Kong's economy is facing enormous challenges this year," Financial Secretary Paul Chan said on Wednesday.
"After careful consideration, I have decided to disburse HK$10,000 to Hong Kong permanent residents aged 18 or above, with a view to encouraging and boosting local consumption on the one hand, and relieving people's financial burden on the other," Mr Chan said.
The individual handouts are part of a HK$120bn relief package to ease the impact of the protests and virus on the economy.
https://www.bbc.co.uk/news/world-asia-china-51640456