The political protests in Hong Kong are taking a heavy toll on the territory’s economy, which is already feeling the chill from the US-China trade war. If the confrontational politics continues, it could compromise the government’s ability to manage the economy. Even Hong Kong’s peg to the US dollar could be vulnerable – more so than during the Asian financial crisis of 1997.

Last week, Hong Kong’s embattled Chief Executive Carrie Lam suggested that the territory’s economic situation is now “more severe” than even during the downturns caused by both the Sars epidemic of 2003 and the global financial crisis of 2008.

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