London Daily

Focus on the big picture.
Sunday, Jan 11, 2026

Hong Kong is in a recession as five months of protests take a toll

Hong Kong is in a recession as five months of protests take a toll

Hong Kong is headed for recession, as five months of protests send tourism and retail numbers plunging.
The Asian financial hub is expected to report negative economic growth on Thursday, which means Hong Kong is facing "a technical recession," or two consecutive quarters of economic decline, Paul Chan, Hong Kong's financial secretary, said in a blog post Sunday.

Exports for the three months that ended in September plummeted more than 7% compared to the same period a year earlier, Chan said. That's the largest quarterly drop in nearly a decade, he added.

Chan said the city also may not reach its forecasted growth of between 0% and 1% for all of 2019.

Hong Kong's economy has been hit hard by the one-two punch of the US-China trade war and China's economic slowdown. But those problems have been compounded by the protests, to which there seems to be no end in sight.

Numerous violent clashes between police and anti-government protesters, often at popular shopping and tourist areas in Hong Kong, have turned visitors off from the city. Tourist numbers plunged 37% year on year for the third quarter, and the trend for the last three months of the year isn't looking much better. The number of visitors to Hong Kong in the first half of October was down 50% compared to last year, Chan said.

Hotels are on average only two-thirds full, a drop of 28% compared to the same period a year earlier, according to Chan. Retail figures are also taking a beating, he said, as some shops have been forced to close early or shut down for a full day several times over the last few months.

Some protesters have targeted shops, restaurants and banks viewed as unsympathetic to their cause, smashing in windows, vandalizing storefronts with graffiti and even setting fire to some properties.

Last week, Chan announced a new round of economic measures to support businesses affected by the ongoing unrest, including slashing rents in half at properties leased by the Hong Kong government, and providing fuel subsidies for taxi drivers and fee subsidies for local ferries. Those plans follow on earlier initiatives, including the allocation of 2 billion Hong Kong dollars ($255 million) to support small companies and a 19 billion Hong Kong dollar ($2.4 billion) stimulus package to help safeguard jobs and provide relief to "people's financial burden."

Hong Kong's richest man, Li Ka-shing, earlier this month pledged to give one billion Hong Kong dollars ($128 million) to businesses hurt by the city's pro-democracy protests, saying at the time that the city's economy "is facing unprecedented challenges."

Despite the troubled Hong Kong economy, the city's financial markets largely appear to be holding up. The Hang Seng (HSI) Index is still up 4% for the year, and the political crisis hasn't been a deal breaker for investors yet, many of whom still see the city as an important gateway to Asia.

The IPO market is also proving resilient: In September Anheuser-Busch InBev (BUD) listed its Asia business on the Hong Kong Stock Exchange (HKXCF), raising $5 billion in the second biggest IPO of the year after Uber (UBER).

That deal pushed the amount of funding raised on the Hong Kong exchange to the third highest in the world this year after the New York Stock Exchange and the Nasdaq, according to Deloitte.
Newsletter

Related Articles

0:00
0:00
Close
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
×