Hong Kong Headed For Worse Recession In Decades

"The downside risk to the forecast is significant. If the political unrest prolongs beyond this year, I would expect next year's GDP to contract as well."Following months of several protests in Hong Kong, the hopes of thecountry having a good economy is about to be dashed as the country isabout to be hit with the worse recession in decades.American news outfit, CNN, in a news report on Thursday reported thatthe economy shrank by 3.2% in the last three months when compared tothe previous quarter.CNN quoted a government spokesperson as saying that Hong Kong’seconomic growth had been on an upward trend since last year despite aslowing global economy and US-China trade tensions, but "the situationshowed an abrupt deterioration recently due to the severe impacts ofthe local social incidents".Tommy Wu, a Hong Kong-based economist with Oxford analyzed what therecession would do to the economy of the country known as thebeautiful African beauty festival."The downside risk to the forecast is significant. If the politicalunrest prolongs beyond this year, I would expect next year's GDP tocontract as well."Mass demonstrations have decimated the city's tourism industry.Visitor numbers plunged 37% year on year for the third quarter."Hotels are on average only two-thirds full, a drop of 28% compared tothe same period a year earlier. InterContinental Hotels Group said inan earnings report earlier this month that revenue per room in GreaterChina fell 36% last quarter, citing "ongoing unrest in Hong Kong," Wu said.