Hong Kong Unveils A Nearly $22Billion Budget To Boost Economy Amid 5th Covid Wave
In a bid to boost its Covid hit economy amidst the fifth wave, Hong Kong has announced a HK$170 billion, i.e. $21.79 billion booster budget yesterday.
In a bid to boost its Covid hit economy amidst the fifth wave of Covid, Hong Kong has announced a HK$170 billion, i.e. $21.79 billion budget yesterday.
This massive budget is aimed at offsetting the shock of Hong Kong¡¯s continuing strict pandemic restrictions on both households and businesses, and also to mitigate long-term damage to the country¡¯s economy, as per Al Jazeera.
Hong Kong¡¯s Financial Secretary Paul Chan described a recent surge in Omicron cases as a ¡®heavy blow¡¯ to residents and small enterprises, and further stated that retail businesses, in particular, would face ¡®intense pressure¡¯ in the short term.
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The New Relief Measures
While battling the fifth wave of this pandemic, Hong Kong¡¯s new relief measures include a handout of $10,000 Hong Kong dollars ($1,282) in consumption vouchers for 6.6 million residents, besides rolling out of loans, tax breaks and subsidies for struggling businesses and property rate concessions, rental relief and electricity subsidies.
Other measures announced by Chan in yesterday¡¯s budget include a $HK1.26 billion ($161.5m) boost for the tourism sector, which has been hit hard by some of the toughest border policies in the world.
This budget comes a day after Hong Kong authorities announced that tough social-distancing rules on gathering and dining will be extended until at least April 2022.
Under the reportedly harshest Covid measures yet, all bars, gyms and beauty parlours in the city have been forced to close, whereas restaurants are only allowed to offer dine-in services before 6 pm.
The Opinions
As per what an economist named Gary Ng told Al Jazeera, ¡°One of the key concerns in Hong Kong right now is that, even if you have the vouchers, where are you going to spend it? Everything is closed, business hours are reduced, especially in the services sector, there¡¯s a really big problem.¡±
The Financial Secretary Chan has said he was confident that the economy would rebound in the second half of the year, estimating an expansion of 2 to 3.5% for the entire year. But Hong Kong¡¯s economy grew 6.4% in 2021.
During his budget speech, Chan reiterated the Hong Kong government¡¯s commitment to its so-called ¡°dynamic zero COVID¡± policy.
He said ¡°A stabilised epidemic situation will also create favourable conditions for the gradual and orderly resumption of quarantine-free travel between the mainland and Hong Kong, thereby injecting greater impetus into the economy,¡±
Even as per what Heiwai Tang, a professor of economics at the University of Hong Kong told Al Jazeera, the budget is ¡°progressive¡±, and said it should be ¡°effective in terms of reducing some of the pain felt by us in Hong Kong¡±.
However, the professor also warned that the government¡¯s strict COVID policies could see the city suffer long-term economic and reputational damage. He said doubling down on its strategy could trigger an exodus of talent and jeopardize Hong Kong¡¯s role as a financial hub.
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