[size=36]Hong Kong warns of "economic cyclone" looming[/size]
[size=36]Economy | 08:35 - 18/08/2019[/size]
warned Paul Chan , Minister of Finance of Hong Kong, he must suffer the city that protests also preparing themselves for an "economic hurricane" caused by a trade war between the United States and China , the recent political turmoil in Hong Kong.
According to the "German", came the warning of the highest budget official in the city after Hong Kong last week cut its forecast for growth in 2019 to zero, against the expected growth of 2 per cent to 3 per cent earlier.
Hong Kong's economy growth was revised lower in the second quarter of this year, as the unrest caused by the protests negatively affected economic activity.
The government confirmed that gross domestic product fell quarterly by 0.4 per cent in the three months to June compared to the previous quarter, more than a 0.3 per cent contraction in the July 31 preliminary reading.
Hong Kong's economy grew 0.5 per cent in the second quarter from the same period a year earlier, lower than the previous estimate of 0.6 per cent.
Large-scale demonstrations and clashes between police and demonstrators began in June and escalated in the following weeks, leading the city to face the most serious political crisis in decades.
Business confidence, retail sales and tourism have been plagued by turmoil, adding to pressure on the economy already hit by the US-China trade war and the global economic slowdown.
The Hong Kong government has adopted a $ 2.4 billion spending package to try to support the economy - a step Chan resembles with food stocks that families gather to prepare themselves against a typhoon, Bloomberg News reported.
Chan wrote that the protests, which closed the airport and resulted in stock market declines, dealt a blow to Hong Kong's domestic economy at a time when the US-China trade war was already cutting exports.
Chan described the economic storm as a dangerous level 3, using the terms used by the Hong Kong Observatory to issue storm warnings.