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Hong Kong Falls into Recession


The economy of Hong Kong is in a perpetual turmoil because of the ongoing protests against the extradition treaty introduced by China. The grudges of China and Hong Kong are hampering the growth of both Chinese and Hong Kong's economy. Hong Kong has fallen into recession after six quarters of negative growth.
Agitated protestors are manifesting vandalism and indulging themselves in various acts staggering the exchange of goods & services. In the wake of this vindictive behavior and slumping economy, the government of Hong Kong is perhaps taking some measures to revive the economy. Although these measures aren't cyclic or structural in nature, they stand a good chance in the resurrection of falling trade. Some of the inflationary measures include:
  • Broadening the horizon of a 50% rent reduction in car parks, restaurants and shops.
  • A $16.5 million inspection subsidy for commercial vessels.
  • Support for travel agents.
  • A six-month fuel subsidy for taxis and some minibuses worth about $1.37 billion.
Hong Kong government additionally is in talks with the travel industry to promote tourism once again. Hong Kong doesn't seem to have a clear roadmap about how it would tackle the stagnation and these tough times. Consumption is falling down, contributing to the slump in the economy of Hong Kong. The instigation of this economic slowdown was the protests and riots taking place. If the government doesn't serve to the sentiments of citizen, the situation might further exacerbate making it even difficult for the Hong Kong’s economy to resuscitate. China, being adamant in its way still refrains from backing off, further infuriating the Hong Kong citizens. It's however clear, that it's the people and the economy that suffer the most in political clout and ambitions.

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