Hong Kong enters a recession for the first time in a decade

Hong Kong has entered a recession in their third quarter for the first time in a decade. Reported on October 31st, their economy shrank 3.2% during the quarter and economists expect it to continue into the New Year. With the continuation of the US-China trade war Hong Kong, being a major trading hub, has suffered greatly. However, political unrest has also played a huge role in their economic decline. Hong Kong has being going through months of anti-government protests resulting in the city’s tourism industry to drop 37%. Hotels are finding it difficul to fill their rooms and restaurants seats are empty. Retail shops are closing early or have been the target of some of the protests. Public transportation and roads are forced to shut down as well. Just recently, on October 31st, protestors took to the streets and defied the recent ban on wearing masks in public gatherings to speak against the government.

Hong Kong’s Chief Executive Carrie Lam isn’t feeling too optimistic about the outcome of this recession, but despite this fall investors are not staying away. Earlier this month, Anheuser-Busch InBev listed Asia business on the Hong Kong Stock Exchange. This raised the initial public offering by $5 billion, coming second after UBER. This has resulted in Hong Kong's Stock Exchange ranking third highest in the world after the New York Stock Exchange and the Nasdaq. This shows there may be some hope after all if the political climate in Hong Kong finds balance.




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