Hong Kong likely to record negative economic growth in 2019: Lam

Executive leader of Hong Kong Carrie Lam said on October 29 that the month-long unrest in the city has disrupted the business and tourism sectors. She expects the Asian financial hub to record negative economic growth for the full year of 2019 as the city suffered from five months of violent anti-government protests. Lam spoke two days after Financial Secretary Paul Chan said that Hong Kong is facing a major economic decline and is unable to achieve any growth in the current fiscal year.

The protests sparked over a now-withdrawn extradition bill which would have allowed suspects to be sent to mainland China for trial. It resulted in the huge protest for destroying their democracy and rights and spurred the city into its biggest political crisis in decades. It also had a negative impact on the economy.

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Negative growth estimated for 2019

Lam said that according to their recent estimation the full year of 2019 will likely show negative growth and added that the situation is very serious. She further added that Hong Kong would not be able to achieve the already revised down positive growth of 0-1%. According to a preliminary assessment, the third-quarter GDP on Thursday is expected to show two successive quarters of recession. Lam, who is supported by the Beijing government, said that the government would take drastic steps to strengthen the economy once the unrest in the Chinese ruled city settles. However, she did not describe more about government measures. The government in previous week unveiled relief measures of HK$2 billion, following an HK$19.1 billion package in August to support the economy.

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Beijing govt backs Hong Kong's administration: Lam

On Sunday, the black-clad and masked demonstrators set ablaze the shops and pelted petrol bombs at police. Lam said that the central government in Beijing is confident about her administration could gain back normalcy in the city and is standing with her in maintaining the law and order. Protestors are upset because they find Beijing interfering with Hong Kong's administration. China denies interference and has accused foreign governments, including the US and Britain for creating tensions. The tourism industry has seen a drastic decline down nearly 50 percent in October. The city is also struggling with rising unemployment and bankruptcies.

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