Tags: hong kong | economy | virus | recession

Hong Kong Economy to See More Weakness Due to Virus Outbreak

Hong Kong Economy to See More Weakness Due to Virus Outbreak
(Hkrunning/Dreamstime)

Monday, 03 February 2020 08:12 AM

The risk of further contraction in the Hong Kong economy, which was buffeted by anti-government protests last year, has increased due to the coronavirus epidemic, Financial Secretary Paul Chan said.

"As it (the economy) enters 2020, it has not shaken off the risk of continued decline, but has encountered the threat of a new coronavirus pneumonia epidemic, which will definitely cause a double blow to the economy," Chan said in a blog post.

"It is estimated that the epidemic situation will greatly increase the risk of continued economic contraction this year, and this will also affect the reduction of government revenue and increase in expenditure."

Hong Kong sank into recession for the first time in a decade in the third quarter as political protests plunged the city into its worst crisis since it reverted from British to Chinese rule in 1997.

Chan said catering, retail, tourism and consumer sectors, which have been hit in the last six months, would "fall into a deeper winter,." The government will continue to monitor closely to ensure the financial stability of Hong Kong, he added.

A total of 350 people have died in China, the country's National Health Commission said. Chinese authorities reported the number of people infected by the virus first found in Wuhan has risen above 17,000 as of Sunday night.

Read more: China Virus Toll Rises as Chinese Markets Plunge | Newsmax.com

Authorities have announced 15 confirmed infections in Hong Kong but no deaths. 

Meanwhile, the Hong Kong economy's first recession in a decade deepened in the fourth quarter of last year, weighed down by often violent anti-government protests and the U.S.-China trade war, advanced estimates showed on Monday.

The economy shrank by a seasonally adjusted 0.4% in October-December from the previous quarter, versus a revised 3.0% in July-September. On an annual basis, the economy contracted 2.9%, compared with a revised 2.8% in the third quarter.

For the whole of 2019, real gross domestic product contracted by 1.2%, the first annual decline since 2009.

Months of unrest in Hong Kong last year plunged the financial and trading hub into its worst crisis since it reverted from British to Chinese rule in 1997.

Analysts predict an even worse first quarter in 2020, as measures to restrict cross-border mobility to fight the spread of a new coronavirus which originated in mainland China deal a further blow to tourism, retail and other business. (Reporting by Hong Kong newsroom; Editing by Jacqueline Wong)

© 2020 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Markets
The risk of further contraction in the Hong Kong economy, which was buffeted by anti-government protests last year, has increased due to the coronavirus epidemic, Financial Secretary Paul Chan said.
hong kong, economy, virus, recession
408
2020-12-03
Monday, 03 February 2020 08:12 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved