Hong Kong is the first recession for more than a decade. After growth to the beginning of the year continued through now, mass protests, and the trade conflict between the United States and China.
The container port of Hong Kong
From April to June, the gross domestic product shrank in the Chinese special administrative zone and by 0.4 percent quarter-on-quarter. To the beginning of the year it is passed, according to the government, nor to a growth of 1.3 percent. In the current summer quarter, for ten weeks of ongoing protests, the democracy could allow movement of the economy shrink. Many tourists shunning the popular Shopping destination because of the unrest, while retailers already complain of sensitive Umatzeinbußen. In the case of two Negative quarters in a row, Economists speak of a recession.
“The recent incidents will lead, if they persist to considerable disturbances in the tourism and consumption-related economic activities, the economic mood continues to dampen and even the reputation of Hong Kong as an international financial and business centre of damage,” said government economist Andrew Au. Hong Kong is also home to one of the largest Container ports in the world.
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Crisis in Hong Kong
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Crisis in Hong Kong: Beijing is increasing pressure (15.08.2019)
Another setback fears
The consulting firm Capital Economis expected in the current quarter, with a decline in economic output by one percent. “In the extreme case of a military Intervention by the mainland, the economy would be in Hong Kong in front of a deep slump,” it says in an analysis for clients. “But even if this does not occur, could be sufficient to the growing threat of such measures to a flight of capital to trigger.”
The government of Hong Kong is braced with a stimulus package against the economic consequences of the protests. With the aid over the equivalent of 2.2 billion euros as well as the consequences of the trade dispute between the United States and China should be mitigated. Finance Minister Paul Chan cut the forecast for economic growth this year. The gross domestic product could stagnate therefore in the worst case. Previously, an increase of two to three percent had been targeted.
Cathay Pacific chief assigns
In the Wake of the continuing mass protests, the head of the Hong Kong airline Cathay Pacific’s Rupert Hogg stepped back, meanwhile, is surprising. The airline, which belongs to 30 per cent, Air China and because of its close British Connections, as a Symbol of the colonial past of Hong Kong is, came under criticism after some of its employees had participated in demonstrations.
He has left his top post: Cathay Pacific boss Rupert Hogg
The resignation of Hogg’s displays in the view of observers, that businesses in Hong Kong are increasingly under pressure to support the leadership in Beijing. In the former British colony of some internationally active and are home to large corporations. With the British Hogg is also the top Manager Paul Loo, took off his hat. Successor to Hogg’s Augustus Tang, chief of the Hong Kong Aircraft Engineering Company.
New Demo in the city centre
Also on Friday, the demonstrations against the Pro-Chinese government went further. At a rally in the city centre more than 10,000 people took part, according to initial estimates. For Saturday and Sunday more protest marches are planned. The protests in the economic metropolis of Hong Kong to hold for ten weeks. The protesters accuse the Hong Kong government is too close to the Communist leadership in Beijing. In particular, chief Secretary Carrie Lam is due to its proximity to Beijing is massively in the criticism and sees himself for weeks with calls for his resignation, the protesters faced. Hong Kong since 1997, is a Chinese special administrative zone, in which the inhabitants of the former British colony enjoy greater personal freedoms than in the people’s Republic. Meanwhile, there is growing concern internationally that Beijing would forcibly intervene.
Meanwhile, five demonstrators were arrested for alleged desecration of a Chinese flag. They should have suspended the beginning of August, a large flag of the people’s Republic, and thrown into the water. You can have up to five years in prison now.
kle/stu (rtr, dpa, afp)