Hong Kong government dishes out sweeteners worth HK$19.1 billion to soothe a faltering economy hit by US-China trade war and political unrest
- Financial Secretary Paul Chan cites a host of reasons for the relief measures but studiously avoids the word ‘protests’
- He warns the city’s economy could enter into a technical recession
The Hong Kong government unveiled a hefty package of relief measures worth HK$19.1 billion (US$2.4 billion) on Thursday as it downgraded the growth forecast to 0 to 1 per cent, citing strong economic headwinds but also indirectly blaming the festering protests.
The sweeteners, spanning help for small businesses to student subsidies and fee waivers for low-income households, will cost the government nearly 50 per cent more than it had originally planned for one-off measures in the annual budget for this year, which carried the price tag of HK$42.9 billion.
“If growth does hit 0 to 1 per cent, this will be the worst situation we have faced since 2009,” Chan said, as he announced the downward revision from the original forecast of 2 to 3 per cent.
He also warned that the city’s economy could enter into a technical recession, citing the slowing growth trajectory and the contraction by 0.3 per cent in the second quarter.
“If Hong Kong’s economy grows in the third quarter at a similar pace to the second, the city will be technically in a recession,” Chan warned.