Hong Kong enters recession, growth unlikely this year: Finance chief

Above: Financial Secretary Paul Chan said measures to support local small and medium-sized enterprises can only "slightly reduce the pressure". Left: Hong Kong's nightlife hot spot Lan Kwai Fong on Sunday. Mr Chan described the plunge in tourist arri
Hong Kong's nightlife hot spot Lan Kwai Fong on Sunday. Mr Chan described the plunge in tourist arrivals as an "emergency".PHOTO: BLOOMBERG
Above: Financial Secretary Paul Chan said measures to support local small and medium-sized enterprises can only "slightly reduce the pressure". Left: Hong Kong's nightlife hot spot Lan Kwai Fong on Sunday. Mr Chan described the plunge in tourist arri
Above: Financial Secretary Paul Chan said measures to support local small and medium-sized enterprises can only "slightly reduce the pressure". PHOTO: BLOOMBERG

Protests have dealt 'comprehensive' blow to economy; tourist arrivals down nearly 50%

HONG KONG • Hong Kong has fallen into recession, hit by five months of anti-government protests that erupted in flames at the weekend, and is unlikely to achieve any growth this year, the city's Financial Secretary Paul Chan said.

Black-clad and masked demonstrators set fire to shops and hurled petrol bombs at the police on Sunday following a now-familiar pattern, with the police responding with tear gas, water cannon and rubber bullets.

TV footage showed protesters, who streamed into the Kowloon hotel and shopping artery of Nathan Road on Sunday, setting fires to street barricades and squirting petrol from plastic bottles onto fires at subway entrances.

At one station, activists rolled a flaming metal barrel down a long staircase towards the police below.

"The blow (from the protests) to our economy is comprehensive," Mr Chan said in a blog post, adding that a preliminary estimate for third-quarter gross domestic product on Thursday would show two successive quarters of contraction - the technical definition of a recession.

He also said it would be "extremely difficult" to achieve the government's pre-protest forecast of 0 per cent to 1 per cent annual economic growth.

The rallying cry of Sunday's protests was to fight perceived police brutality and defend Muslims and journalists.

Police last weekend fired water cannon at a group of people standing outside a mosque, and journalists have been wounded in the clashes.

The programming staff union of public broadcaster RTHK said yesterday it had called on the police to identify officers who "attacked and ripped the face mask" off one of its journalists on Sunday.

It said she was wearing a reflective vest clearly identifying herself as a journalist.

It was not immediately clear if she was wearing a gas mask to protect against tear gas and pepper spray. Ordinary face masks were banned this month under a resurrected colonial-era emergency law.

 
 
 

Hong Kong Free Press, an online news service, called for the release of a freelance photographer arrested on Sunday.

The city's Foreign Correspondents' Club condemned the arrest in a statement yesterday, calling for an independent investigation into "police violence against journalists and interference with the media's right to cover the protests under Hong Kong law".

The police, who deny using excessive force in life-threatening situations, held a news conference yesterday which ended in chaos when some journalists started yelling at the police, shining bright light in their eyes "just like you do to us".

Protesters have routinely torched store fronts and businesses including banks, particularly those owned by mainland Chinese companies. They have also vandalised the city's MTR stations.

The MTR, which has shut down services to stop protesters from gathering, has closed early for the past few weeks and said it will again shut down two hours early yesterday to repair the damage.

Protesters are angry about what they view as rising interference by Beijing in Hong Kong, which returned to Chinese rule in 1997 under a "one country, two systems" formula intended to guarantee freedoms not seen on the mainland.

China denies meddling. It has accused foreign governments, including the United States and Britain, of stirring up trouble.

Tourist arrivals have plummeted, with visitor numbers down nearly 50 per cent this month, a decline Mr Chan called an "emergency".

Retail operators, from prime shopping malls to family-run businesses, have been forced to close for multiple days over the past few months.

While the authorities have announced measures to support local small and medium-sized enterprises, Mr Chan said the measures could only "slightly reduce the pressure".

"Let citizens return to normal life, let industry and commerce operate normally, and create more space for rational dialogue," he wrote.

REUTERS

 
A version of this article appeared in the print edition of The Straits Times on October 29, 2019, with the headline 'HK enters recession, growth unlikely this year: Finance chief'. Print Edition | Subscribe