The Hong Kong economy sunk into recession in the third quarter due to sustained protests and an ongoing vicious trade war between the US and China.
Officials of the Chinese territory told members of the press that it shrunk by 3.2 percent in the quarter that ended in September.
It was the most serious economic crisis for Hong Kong since the crisis that hit the global economy ten years ago.
"The Government will announce the advance estimates on Gross Domestic Product (GDP) for the third quarter on the coming Thursday. Following the quarter-on-quarter negative growth recorded in the second quarter, the economy continued to contract in the third quarter, which means Hong Kong’s economy is technically heading into recession. The extent of contraction has magnified. Worse still, the economy remains in the doldrums. It becomes extremely difficult to reach the 0 to 1% real GDP growth forecast for the year and we cannot rule out the possibility of negative economic growth for the full year, " Paul Chan, Hong Kong's financial secretary wrote in a blog post.
Hong Kong continues to grapple with demonstrations staged by pro-democracy protesters who have been taking to the streets for five months now.
The protests have seen transportation grounded and malls that fired the economy closed.