Hong Kong’s economy has entered a recession, according to official figures released Friday. The city’s gross domestic product (GDP) shrank for the second consecutive quarter, fulfilling the technical definition of a recession.

The contraction is largely attributed to the ongoing anti-government protests that have gripped the city for months, deterring tourists and disrupting business activity. The protests, which began in opposition to a now-withdrawn extradition bill, have evolved into a broader movement demanding greater democracy and police accountability.

In addition to the social unrest, Hong Kong’s economy is also feeling the impact of the US-China trade war. The trade dispute has dampened global demand and disrupted supply chains, affecting Hong Kong’s role as a major trading hub.

The government has announced a series of measures to support businesses and individuals affected by the economic downturn. However, analysts warn that the outlook remains uncertain, and a sustained recovery will depend on resolving the political crisis and easing trade tensions.

Key factors contributing to the recession include:

• Decline in tourism
• Disruption to retail sales
• Reduced investment
• Weakening global demand

The Hong Kong Monetary Authority has also taken steps to stabilize the financial system and provide liquidity to banks. The government is closely monitoring the situation and stands ready to take further action as needed.