Hong Kong economy driven by local spending as exports remain weak, finance chief says, appealing to residents to spend consumption vouchers in July
- Financial Secretary Paul Chan attributes poor performance of exports to continuing external challenges
- Chan calls on residents to ‘spend more’, noting latest instalment of consumption vouchers worth up to HK$2,000 will be distributed on July 16
Local consumption has driven Hong Kong’s economy so far this year as demand for exports remains weak, the finance chief has said, calling on residents to spend more when digital vouchers are handed out next month.
“So far this year, our economy has mainly relied on consumption as exports continue to drop while we are facing immense challenges in the external environment,” Chan said at a festival promoting local organic watermelons, part of the HK$20 million (US$2.5 million) “Happy Hong Kong” campaign.
The financial secretary appealed to residents to “spend more to help stimulate the economy”, noting the latest instalment of consumption vouchers worth up to HK$2,000 would be distributed on July 16.
Hong Kong’s economy grew by 2.7 per cent in the first quarter over a year earlier, ending four consecutive quarters of contraction. The government’s full-year forecast for growth is between 3.5 and 5 per cent.
Retail sales continue to improve, recording year-on-year growth of 15 per cent in April, 40.8 per cent in March and 31.3 per cent in February.
Sales hit HK$34.71 billion in April, near what was spent in the summer months of 2019, just before the pandemic hit. Chief Executive John Lee Ka-chiu earlier said he was optimistic this year’s consumption vouchers worth about HK$30 billion would contribute to about a month’s worth of retail sales to the economy.