Hong Kong’s economy shrunk by 1.2 percent last year, the first year-on-year decline since 2009. The city-state sighs with continued protests against the increasing influence of the Chinese government, while trade tensions have also hit them.
In the fourth quarter of last year, the Hong Kong economy shrank by 0.4 percent compared to the previous period. This has seen shrinkage for three quarters in a row.
The months of protests for more freedom and democracy in the Chinese particular administrative region undermined store sales and tourism to Hong Kong, while exports were under pressure due to trade tensions between China and the United States.
Economists fear that Hong Kong’s economy will suffer in the coming period from the outbreak of the new coronavirus in China.
Concerns about the virus affect tourism and air traffic to the city-state, for example.