Saudi Press

Saudi Arabia and the world
Saturday, Feb 22, 2025

Hong Kong in first recession for a decade

Hong Kong has confirmed it has entered its first recession for a decade as it continues to be gripped by protests.

Its economy shrank 3.2% in the July-to-September period compared with the prior quarter, figures showed, confirming earlier preliminary data.

It means the economy has contracted for two quarters in a row, which is the usual definition of a recession.

Tourists are staying away and shops are suffering amid battles between anti-government protesters and police.

"Domestic demand worsened significantly in the third quarter, as the local social incidents took a heavy toll on consumption-related activities and subdued economic prospects weighed on consumption and investment sentiment," the government said in a statement.

It now expects the economy to shrink 1.3% for the full year.

"Ending violence and restoring calm are pivotal to the recovery of the economy. The government will continue to closely monitor the situation and introduce measures as necessary to support enterprises and safeguard," the government added.


Why are there protests in Hong Kong?

The bill was eventually withdrawn but the protests continued, having evolved into a broader revolt against the police, and the way Hong Kong is administered by Beijing.

Protests have taken place every weekend over the past few months, causing widespread disruption and a number of deaths.

On Thursday, a 70-year-old cleaner died after he was hit in the head during a protest in the Hong Kong border town of Sheung Shui.

Video purported to be of the incident shows two groups throwing bricks at each other before the man falls to the ground after being struck on the head.

Dramatic scenes such as these have kept tourists away. In August, arrivals to the city - a popular travel destination and transit hub - hit their worst level since the SARS crisis of 2003.

Some hotels have slashed prices as they struggle to fill their rooms.

On Thursday, two companies with major operations in Hong Kong revealed the financial impact of the protests.

Luxury fashion house Burberry said its sales in Hong Kong had fallen by more than 10% and would "remain under pressure".

Airline Cathay Pacific cut its profit guidance and said the civil unrest had "been exceptionally challenging, severely impacting demand and operations of the business".


Why the spike in anger?

This week has seen a marked escalation in violence with intense street battles, violent clashes at universities and lunchtime protests in the financial heart of Hong Kong.

It is the first time in weeks that protests have taken place during weekdays.

Monday's protests followed a weekend of vigils and demonstrations after a 22-year-old student protester died last week.

Alex Chow had been in hospital since he fell from the ledge of a car park during a police operation a week ago.

Later on Monday, violence escalated further when a police officer shot an activist in the torso with a live bullet and a pro-government supporter was set on fire by protesters.

In London, Hong Kong's Justice Secretary Teresa Cheng was hurt after being jostled by anti-government protesters, the Chinese embassy said.

Ms Cheng is seen as having played a key role in promoting the unpopular extradition bill that triggered the protests. China strongly condemned the incident and called for a thorough investigation.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Saudi Arabia and the United States Strengthen Ties Amid Global Developments
Saudi Arabia Hosts Global Conference to Promote Islamic Unity
The Impact of Artificial Intelligence on Education and Child Development
Saudi Arabia Announces Competition for Best Founding Day Outfits
Saudi-EU Food Security Officials Hold Talks to Strengthen Collaboration
Putin Expresses Gratitude to Saudi Crown Prince for Hosting US-Russia Talks
UK and Saudi Arabia Enhance Collaboration in Innovation and Technology
Denmark's Embassy in Riyadh Showcases Danish Cuisine with Saudi Influence
Saudi Artist Salman Al-Amir Unveils 'Tafawut' Exhibition in Riyadh
Saudi Arabia Offers Condolences to Kuwait Following Military Exercise Fatalities
Saudi Ministry of Islamic Affairs Completes Ramadan Preparations in Madinah
Etidal Secretary-General Hosts UN Counter-Terrorism Director in Riyadh
ADNOC Drilling Targets Over $1 Billion in Investments for 2025 Amid Gulf Expansion Plans
Derayah Financial Achieves Remarkable Growth in Saudi Brokerage and Asset Management
Saudi Arabia Shortlists 30 Firms for Mining Licenses in Eastern Province and Tabuk
Saudi Foreign Minister Engages Counterparts at G20 Meeting in Johannesburg
Oil Prices Decline Amid Rising US Inventories
Saudi Arabia's NDMC Plans Green Bond Issuance by 2025
Moody’s Affirms Egypt’s Caa1 Rating Amid Positive Economic Outlook
Oman and Saudi Arabia Strengthen Economic Ties with New Agreements
Saudi Arabia Investments Propel Expansion of Qurayyah Power Plant
Saudi Capital Market Authority Advances SPACs and Direct Listings
Global Energy Leaders Gather in Riyadh for Symposium on Energy Outlooks
Al-Ahsa Region Sees 500% Growth in Tourism as Saudi Arabia Prioritizes Development
Saudi Arabia Advances Entrepreneurial Ecosystem in Al-Ahsa with New Agreement
King Salman Approves Official Saudi Riyal Symbol
Saudi Credit Card Lending Reaches $8.4 Billion Amid Digital Payment Expansion
King Salman Approves Official Symbol for Saudi Riyal
Putin Thanks Saudi Crown Prince for Facilitating U.S.-Russia Discussions
Saudi Foreign Minister Attends G20 Meeting in Johannesburg
Saudi Arabia Prepares for Nationwide Founding Day Celebrations
Inauguration of Hira Park and Walkway Enhances Jeddah's Urban Landscape
Crown Prince Hosts Leaders for Informal Meeting in Riyadh Amid Gaza Rebuilding Plans
Saudi Official Highlights Achievements and Media's Role in National Transformation
Three Expatriate Women Arrested for Prostitution in Riyadh
Saudi Arabia's Diplomatic Evolution Highlighted at Saudi Media Forum
Healthy Eating and Preparation Essential for Ramadan Fasting
Saudi Arabia and Japan Forge Sustainable Textile Partnership
Advanced Limb Surgery Restores Mobility in Pediatric Cancer Patient
Jeddah Event Explores AI's Role in Boosting Saudi Arabia's SME Sector
UN Representative Highlights AI's Role in Perpetuating Gender Stereotypes
Saudi and Jordanian Leaders Discuss Enhanced Security Cooperation in Amman
Saudi British Society Honors Cultural Bridge-Builders at London Gala
Saudi Media Forum 2025 Explores AI's Role in Modern Journalism
Saudi Arabia's Saqer Al-Moqbel Appointed as WTO General Council President for 2025–2026
Saudi Deputy Ministers Engage in Diplomatic Discussions with U.S. and Dutch Officials in Riyadh
Saudi Arabia to Launch Iftar Program in 61 Countries During Ramadan
Saudi Visitors Expected to Spend £942 Million in UK During 2025
Saudi Arabia Gifts Kaaba's Kiswah to Uzbekistan's Center of Islamic Civilization
Digital Cooperation Organization Concludes Fourth General Assembly with Multiple Agreements
×