Economic crunch causes Hong Kong’s wealthy to cut back

The fears over a global recession have caused ripples in consumer confidence accross asia.  Confidence is particularly affected in Hong Kong in light of the global economic crisis. Much of Hong Kong’s trade is import / export with the USA and Europe, centers of burgeoning recession.

Many local businesses have already reported falling sales, mainly amongst those that sell luxury items, are becoming increasingly aware of belt-tightening and sluggish demand.

The diamond industry in Hong Kong has historically been strong with many wealthy residents and visitors taking advantage of tax breaks and discounts.  The fear of recession is causing demand to fall.