HONG KONG, April 29 (Xinhua) -- Financial Secretary of China's Hong Kong Special Administrative Region (HKSAR) government Paul Chan said Wednesday that the local economy will likely shrink four to seven percent year on year in 2020 due to prolonged impact from the COVID-19 epidemic.
The forecast was down from the previous projection of a range between a 1.5-percent decline and a 0.5-percent increase published in the Budget in February.
"Given recent epidemic development, the impact on Hong Kong's economy is more severe and enduring than previously estimated and the economic performance this year will inevitably be worse than predicted," Chan said during a meeting of the HKSAR Legislative Council.
The COVID-19 outbreak since January has taken a heavy toll on a wide range of industries in Hong Kong, with plunges in foreign trade, inbound visitors, retail sales and investment. Overall jobless rate spiked to a new high in more than nine years, with retailers, hotels and restaurants suffering the most.
Chan said the preliminary GDP for the first quarter, scheduled to be released next week, will show the economy performed even worse than the global financial crisis in 2008 and the Asian financial crisis in 1999.
Given the grave economic challenges, the HKSAR government has rolled out relief packages worth about 290 billion Hong Kong dollars (about 37.42 billion U.S. dollars) in this year, equivalent to nearly 10 percent of GDP, to help businesses and residents weather out the economic hardships.
During his speech, Chan urged lawmakers to pass Appropriation Bill 2020 at an early date so that Hong Kong residents will benefit from relief measures by the government, including 10,000 Hong Kong dollars of subsidy for each permanent resident.
Thanks to effective anti-epidemic measures, no COVID-19 cases were reported in Hong Kong for four consecutive days, offering hope for the economy to start reviving soon.
However, as for when Hong Kong will step out of economic woes, it will also be determined by whether the society is stable or not, Chan said.
"If the violence in the second half of last year continues, with roads and airport blocked, railways and shops vandalized, and people with different opinions assaulted again, more shops will close, foreign businesses will not dare to invest in Hong Kong, and more people will lose their jobs, and the livelihood of more families will be affected," Chan said.
Then no matter how many measures is taken by the government, the economy will not recover, Chan said.
Chan called on Hong Kong residents to put aside disputes and make concerted efforts to resolve difficulties in a bid to put the economy back on track at an early date. (1 U.S. dollar equals 7.75 Hong Kong dollars) Enditem
