HONG KONG sank into recession for the first time in a decade in the third quarter of the year, government data confirmed Friday.

The economy shrank by 3.2 percent in the July-September period from the previous quarter on a seasonally adjusted basis, revised government data showed, in line with a preliminary reading.

Gross domestic product (GDP) contracted for the second consecutive quarter, meeting the technical definition of a recession.

With no end to the protests in sight, analysts warn the financial and trading center potentially faces a longer and deeper slump than during the global financial crisis in 2008/2009 and the SARS epidemic in 2003.

From a year earlier, the economy contracted 2.9 percent, also in line with the preliminary reading. The readings were the weakest since the global financial crisis.

“Domestic demand worsened significantly in the third quarter, as the local social incidents took a heavy toll on consumption-related activities and subdued economic prospects weighed on consumption and investment sentiment,” the government said in a statement.

It revised down its forecast for full-year growth to a contraction of 1.3 percent versus an earlier estimate of 0 to 1 percent growth. That would mark the first annual decline since 2009.(SD-Agencies)