Battered by Covid-19 third wave and US-China showdown, Hong Kong recovery could take longer than expected: finance chief

But while road ahead is filled with uncertainty, Paul Chan sees glimmers of hope, including expected improvement in June retail sales

The financial secretary also called on landlords, particularly those accepting anti-epidemic funds, to lower rents in spirit of ‘social responsibility’

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Retail sales figures for June are expected to improve from the three months prior, Hong Kong Financial Secretary Paul Chan hinted on Sunday. Photo: Felix Wong

Published: 3:08pm, 26 Jul 2020Updated: 10:47pm, 26 Jul 2020

Hong Kong’s economy could take longer than expected to recover amid the third wave of Covid-19 cases and a sharp deterioration in US-China ties, the city’s finance chief has warned.

But Financial Secretary Paul Chan Mo-po said the slump in retail sales in June was expected to narrow compared with the months prior, despite the second-quarter economic situation remaining dire.

Chan’s remarks come as the city has struggled to control the latest wave of infections – reporting record tallies for four straight days – and to respond to the recent US move to end special trade preferences for the international financial hub.

Financial Secretary Paul Chan took to his blog on Sunday to warn the city’s economic recovery could take longer than hoped. Photo: Nora Tam

“The sharp deterioration in Sino-US political, economic and trade relations and the rising geopolitical tensions have added uncertainty to the global economic outlook,” he said in his blog on Sunday.

“In addition to the recent recurrence of the local epidemic, the local economy could take longer than originally expected to recover.”