Hong Kong economy shrinks for first time in a decade

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Hong Kong confirmed Monday it plunged into recession in 2019, suffering its first annual contraction in a decade as the city buckled under the twin pressures of the US-China trade war and months of fu

rious pro-democracy protests.

The crisis was initially sparked by the trade war between Beijing and Washington, hitting the export-heavy economy. The fourth quarter, which witnessed the worst violence between police and protesters, clocked a 2.9 percent contraction, the third straight quarter of declines."The local social incidents with violence during the quarter took a further heavy toll on economic sentiment as well as consumption and tourism related activities," the government said in a statement.

The protests have died down in frequency and ferocity in the last two months, but the underlying cause has not gone away.

 

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