BEIJING, Oct. 14 (Xinhuanet) -- As Hong Kong’s protests continue for a third week, the costs are mounting. CCTV's Cathy Yang is in the city. She’s also been speaking with top economists in Hong Kong to talk about the impacts these disruptions are having on local businesses, as well as the reputational damage the protests are having on the city as a global financial centre and gateway to the Chinese Mainland.
While walking along a main thoroughfare here in Wanchai at rush hour - the third Monday since the protest rallies, and the length of this is still blocked from traffic. Head over there in Admiralty and you’ll end up with pitched tents of protestors. These barricades have driven trucks, buses and cars to the side streets over there, causing major bottlenecks and lengthy delays. It has also caused business in the city to slow even more.
A few blocks down along Johnston Road still none of the usual trams around here. But the roads have remained open to traffic. While it has helped keep small jewelry shops like these open for business even at the height of the protests; its shop keeper says sales have been hard hit.
What’s starting to look like the new normal in Hong Kong is beginning to worry those who crunch the numbers. To what extent, depends on how long the disruptions last, says Raymond Yeung, senior economist of ANZ’d. He’s become more pessimistic now than when we first spoke to him a week ago.
"In Hong Kong, the fourth quarter GDP contributes significantly or higher than previous quarters," Yeung said. "For example on average, 27% of the annual GDP. So anything happens to the fourth quarter will have a bigger impact on the annual growth of Hong Kong. At this stage, I’m still looking at 2.5% GDP growth this year but the chance for me to revise it downwards is much higher than before.”
In nearby Causeway Bay where Hennessy Road continues to be blocked by protesters for a third straight week. It has hurt shops like these; even more. Even before the disruptions began, the jewelry chain already saw a 40 percent drop in sales, as Mainland tourists reduced lavish spending amid Beijing’s corruption crackdown.
Just a few shops away, sales of this pharmacy have plunged 60 percent since the protest rallies, says the shopkeeper. He refused to be interviewed ; but shared with us that it has been pretty bad, especially as his shop is located in a tourist area.
Business in Hong Kong had already been sluggish since the start of the year. A prolonged protest raises the specter of an even slower growing Hong Kong in the months ahead.
(Source: CNTV.cn)
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