Economic Affairs: Hong Kong's protests ring alarm bells for its economy

Managing a downturn has now become harder for the government

The political protests in Hong Kong are taking a heavy toll on the territory's economy, which is already feeling the chill from the US-China trade war. If the confrontational politics continues, it could compromise the government's ability to manage the economy. Even Hong Kong's peg to the US dollar could be vulnerable - more so than during the Asian financial crisis of 1997.

Last week, Hong Kong's embattled Chief Executive Carrie Lam suggested that the territory's economic situation is now "more severe" than even during the downturns caused by both the Sars epidemic of 2003 and the global financial crisis of 2008.

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A version of this article appeared in the print edition of The Straits Times on August 14, 2019, with the headline 'Hong Kong's protests ring alarm bells for its economy'. Print Edition | Subscribe