Protests and Covid leave Hong Kong stuck in recession

Political unrest hit tourism and retail, and coronavirus response has delayed recovery

Hong Kong's economy was already in recession when the pandemic hit in January. Six months of running battles between pro-democracy campaigners and local government had deterred many of the visitors who fuel the lucrative tourism industry, while the threat of violence on the streets and closures of shops had sent retail sales down nearly a quarter on the previous year.

With much of Asia shut down by coronavirus restrictions during the winter months, there was little expectation of a recovery until the spring, when the level of infections fell to almost zero across mainland China and most of the rest of the region, and the measures could be eased.

The national security law China imposed on Hong Kong in June 2020 has wrought profound changes on the region of more than 7 million people.

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