According to Reuters, Business activity in Hong Kong’s private sector has fallen to its weakest in 21 years this October. Anti government protests and softening global demand have weighed down the private sector. This is according to an IHS survey that was published Tuesday.
The cities tourism and retail sector have been suffering terribly due to over five months of street protests. These protests have been violent at times. Data from the preliminary government has shown that the economy has slid into a recession for the first time in a decade in the third quarter.
In order to show expansion the survey reading must be above 50. Anything below 50 is signal for contraction.
During the summer stores, restaurants, and malls had to shut in order to avoid clashes between protesters and police. This all happened while the trade wars between the U.S. and China were intensifying. China is one of the most popular tourism destinations so this had a major impact on the economy.
When Beijing was returned to the Chinese rule in 1997 by Britain, the promised a “one country, two systems” formula that promised freedoms cherished by the city. People are protesting because they see Beijing tightening its grip on the people and they fear they are losing the cherished freedoms that they were promised.
The protests are showing no sign of stopping. They started in the middle of June and continue. The protests are calling for universal suffering and an independent inquiry into excessive police action. Along with many other demands.
Police claim that they have shown restraint in the face of violence and only use rubber bullets, and tear gas when the protesters become to violent and unsafe.
The protests and turmoil is having an impact on the economy and are showing no signs of stopping.
Credit to Original Story: https://www.reuters.com/article/us-hongkong-economy-pmi-idUSKBN1XF06Z?utm_campaign=trueAnthem%3A+Trending+Content&utm_content=5dc11f458021ed0001332f05&utm_medium=trueAnthem&utm_source=twitter