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HONGKONG-CHINA-POLITICS-UNREST-ECONOMY,LEAD
Hong Kong economy shrinks for first time in a decade
HONG KONG, Feb 3, 2020 (BSS/AFP) – Hong Kong confirmed Monday it plunged
into recession in 2019, suffering its first annual contraction in a decade as
the city buckled under the twin pressures of the US-China trade war and
months of furious pro-democracy protests.
The data was released as the semi-autonomous city begins the lunar new
year facing another economic crisis — the outbreak of a deadly new
coronavirus strain which began on the Chinese mainland and is compounding
Hong Kong’s economic woes.
Last year was the worst for Hong Kong’s growth since 2009, when the
financial hub was hit hard by the global financial crash.
The crisis was initially sparked by the trade war between Beijing and
Washington, hitting the export-heavy economy.
But the hard times were made worse by months of seething and often violent
protests seeking greater democracy and police accountability.
Official figures released on Monday showed Hong Kong’s gross domestic
product shrank 1.2 percent on-year for 2019.
The fourth quarter — which witnessed the worst violence between police
and protesters — clocked a 2.9 percent contraction, the third straight
quarter of declines.
– ‘Heavy toll’ –
“The local social incidents with violence during the quarter took a
further heavy toll on economic sentiment as well as consumption and tourism
related activities,” the government said in a statement.
“Total exports of goods continued to decline amid the difficult external
environment, though at a somewhat narrower rate,” it added.
Clashes between protesters hurling bricks and petrol bombs and police
wielding tear gas and rubber bullets became a weekly occurrence for nearly
six months last year.
The protests have died down in frequency and ferocity in the last two
months, but the underlying cause has not gone away.
Hong Kongers are rattled by the feeling that an increasingly assertive
Beijing is clamping down on their city’s freedoms.
The protests were first sparked by a proposal to allow extraditions to the
mainland and its opaque, Communist Party-controlled legal system.
But they soon morphed into a popular revolt against Beijing’s rule.
The extradition bill was eventually killed off after months of unrest, but
the movement has achieved few of its other demands, which include an inquiry
into the police, an amnesty for those arrested and fully free elections.
BSS/AFP/RY/15:30 hrs