This Week’s Big News
Hong Kong shocked Asian investors this weekend with the announcement that they have entered their first recession since the deadly SARS epidemic. Hong Kong’s government economist, Helen Chan, said that demand for Hong Kong services have been "severely hit by the outbreak of the global financial tsunami that caused significant jitters in the local asset markets."
Economists predict Hong Kong’s downturn will be deep and will worsen next year. "This is only the beginning of the economic aftershock, and the territory will likely continue to suffer from tremors in the coming quarters," says DBS economist Connie Tse.
