How fitting. Just yesterday we were heading Hong Kong – megacity before economic collapse. And quite recently Hong Kong has published its gross domestic product as an independent economic unit (special status within China after the return from London to Beijing). A negative result had already been expected after the ever increasing massive protests and street battles, which are likely to have a massive impact on consumption and tourism in the city. And this is what the current figures look like.
Hong Kong’s gross domestic product fell by 2.9% in the third quarter compared to the third quarter of 2018! Compared to the 2nd quarter of 2019 it even collapsed by 3.2%! This shows how violently the chaos is currently pulling the economy down! The following two charts show the dramatic slump compared to the previous quarters. By definition, Hong Kong is now in recession because there was already a small minus in the previous quarter! If the situation escalates and Beijing sends military, is the downward bar in the chart likely to widen in the next quarter.