The ongoing unrest in Hong Kong has been causing significant economic repercussions for the region for more than five months.

Recent disturbances in Hong Kong have resulted in a capital outflow of over $5 billion since April, as reported by the Bank of England. This amount accounts for approximately 1.25% of Hong Kong’s GDP. The outflow of capital began in April following protests triggered by a proposal to permit the extradition of suspects from Hong Kong to Mainland China. The protests escalated into extensive riots after several weeks, plunging Hong Kong into its first recession since the 2009 financial crisis.

The Bank of England’s report emphasizes that “These political tensions present risks, considering Hong Kong’s importance as a major financial hub.” The report also highlights a significant drop of over 50% in Hong Kong’s property prices.

Despite these challenges, the Hong Kong Dollar experienced a surge to a five-month peak last week. Nonetheless, the Hong Kong Central Bank refutes some claims made in the report. A spokeswoman stated, “Based on the most recent data on deposits, money supply, and the current financial market conditions, there hasn’t been any noticeable fund outflow from the Hong Kong dollar or the banking system.”