Hong Kong’s economy to further improve if city’s Covid-19 situation remains under control, says finance chief
- Job market has stabilised and inflation risks remain mild, says Financial Secretary Paul Chan Mo-po
- Chan also addressed concerns about losing tax revenue amid rising emigration
Hong Kong’s economy will continue to improve if the city’s Covid-19 situation remains under control, the finance chief has said, adding that the job market had stabilised and local inflation risks were low.
Financial Secretary Paul Chan Mo-po made the remarks after the government earlier downgraded its full-year forecast for the city’s economic growth to 1-2 per cent for 2022 from 2-3.5 per cent, reflecting the havoc caused by the fifth wave of coronavirus cases in the first quarter.
“Sentiment and consumption has notably improved because of the relaxing of social-distancing measures. If the pandemic remains under control, our economy will continue to revive,” Chan told a Legislative Council panel on Monday.
He added that the job market had also begun to improve because of relaxed Covid-19 curbs, increased consumption and government aid.
“The labour market was under severe pressure amid the fifth wave … However, the situation has stabilised, with the 2022 Employment Support Scheme and other measures which have helped ease unemployment,” he said.
The city’s economy also shrank by 4 per cent during the first quarter of 2022. In 2021, its gross domestic product jumped 6.4 per cent after shrinking 6.5 per cent a year earlier.
Meanwhile, Chan also addressed concerns from lawmakers about losing tax revenue as a growing number of residents had left the city.