London Daily

Focus on the big picture.
Wednesday, Jul 30, 2025

Hong Kong in first recession for a decade

Hong Kong has confirmed it has entered its first recession for a decade as it continues to be gripped by protests.

Its economy shrank 3.2% in the July-to-September period compared with the prior quarter, figures showed, confirming earlier preliminary data.

It means the economy has contracted for two quarters in a row, which is the usual definition of a recession.

Tourists are staying away and shops are suffering amid battles between anti-government protesters and police.

"Domestic demand worsened significantly in the third quarter, as the local social incidents took a heavy toll on consumption-related activities and subdued economic prospects weighed on consumption and investment sentiment," the government said in a statement.

It now expects the economy to shrink 1.3% for the full year.

"Ending violence and restoring calm are pivotal to the recovery of the economy. The government will continue to closely monitor the situation and introduce measures as necessary to support enterprises and safeguard," the government added.


Why are there protests in Hong Kong?

The bill was eventually withdrawn but the protests continued, having evolved into a broader revolt against the police, and the way Hong Kong is administered by Beijing.

Protests have taken place every weekend over the past few months, causing widespread disruption and a number of deaths.

On Thursday, a 70-year-old cleaner died after he was hit in the head during a protest in the Hong Kong border town of Sheung Shui.

Video purported to be of the incident shows two groups throwing bricks at each other before the man falls to the ground after being struck on the head.

Dramatic scenes such as these have kept tourists away. In August, arrivals to the city - a popular travel destination and transit hub - hit their worst level since the SARS crisis of 2003.

Some hotels have slashed prices as they struggle to fill their rooms.

On Thursday, two companies with major operations in Hong Kong revealed the financial impact of the protests.

Luxury fashion house Burberry said its sales in Hong Kong had fallen by more than 10% and would "remain under pressure".

Airline Cathay Pacific cut its profit guidance and said the civil unrest had "been exceptionally challenging, severely impacting demand and operations of the business".


Why the spike in anger?

This week has seen a marked escalation in violence with intense street battles, violent clashes at universities and lunchtime protests in the financial heart of Hong Kong.

It is the first time in weeks that protests have taken place during weekdays.

Monday's protests followed a weekend of vigils and demonstrations after a 22-year-old student protester died last week.

Alex Chow had been in hospital since he fell from the ledge of a car park during a police operation a week ago.

Later on Monday, violence escalated further when a police officer shot an activist in the torso with a live bullet and a pro-government supporter was set on fire by protesters.

In London, Hong Kong's Justice Secretary Teresa Cheng was hurt after being jostled by anti-government protesters, the Chinese embassy said.

Ms Cheng is seen as having played a key role in promoting the unpopular extradition bill that triggered the protests. China strongly condemned the incident and called for a thorough investigation.

Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×