Hong Kong to spend $15.4B to stabilize virus-ravaged economy
Feb 24, 2021
Hong Kong will introduce pandemic relief measures worth $15.4 billion to help businesses and residents as the city anticipates economic growth later this year
HONG KONG (AP) — Hong Kong will introduce 120 billion Hong Kong dollars ($15.4 billion) in fiscal measures to help businesses and residents impacted by the coronavirus pandemic, as it looks towards economic growth later this year following a recession in 2020.
The measures — which include tax relief, loans for the unemployed and consumption vouchers — are aimed at stabilizing the economy, Hong Kong Finance Minister Paul Chan said in a budget speech Wednesday. He forecast the economy is set to grow 3.5% to 5.5% this year, compared to the economic contraction of 6.1% in 2020.
The budget for 2021 “aims to alleviate the hardship and pressure caused by the economic downturn and the epidemic,” Chan said.
Unemployed residents can get loans capped at 80,000 Hong Kong dollars ($10,300) in a program that postpones payments for the first year and charges 1% interest. The measures come after Hong Kong last week reported a 7% jobless rate between November and January, the highest since April 2004.
Vouchers worth 5,000 Hong Kong dollars ($645) will also be issued in installments to residents to boost consumption. Businesses and individuals will also receive tax relief.
Chan said that Hong Kong’s fiscal deficit is at a record high, after the government last year spent 300 billion Hong Kong dollars ($38.7 billion) on supporting measures, including a cash handout to residents and wage subsidies for businesses.
He also said that mainland China’s economy was “fundamentally sound” despite uncertainties from the epidemic and in US-China relations. Hong Kong, as a semi-autonomous Chinese city, will benefit from this.
“In the medium term, Hong Kong will continue to benefit from the ongoing development of the mainland and the shift in global economic gravity from West to East,” Chan said.
More News
Call for more food funding due to high living cost
Deputy Louise Doublet does not think the cost of living was considered in the ending of a trial.
Charity reflects on changing needs over 25 years
Help a Guernsey Child says it has provided in excess of £1.2m worth of essential support.
Nightclubs are disappearing - and it's affecting young people
One young person said with no nightlife in their town they cannot "let loose and mess around".
M.L.B. Playoff Ads With Sydney Sweeney and Megan Fox Draw Backlash
Commercials with Sydney Sweeney promoting a gambling platform and Megan Fox endorsing male enhancement have rankled fans, and even athletes. Who is in charge?
Netflix Hurries to Rewrite Its Narrative With Layoffs and a Sudden Firing
Despite strong revenues and profits, the streaming service cut 1,000 jobs and jettisoned its chief content officer. Drops in the stock price and viewer engagement are to blame.
Why Bad News in the Bond Market May Be Good News for Investors
In the contrarian logic of investing, rising interest rates have made bonds much more attractive, our columnist says.
U.S. Budget Deficit Nears $2 Trillion, a Reality Check for Trump’s Cost Cutting
Higher interest rates are inflating borrowing costs as the Trump administration spends on the Iran war and tariff refunds.
Indonesian Stocks Plunge as MSCI Threatens to Drop Market from Indexes
The potential downgrade by MSCI, an influential index provider, adds to a deepening crisis of investor confidence in the economic policies of President Prabowo Subianto.
Warsh Vows to Tame Inflation as A.I. Delivers ‘Shock’ to Economy
The Federal Reserve chairman stuck to his pledge to avoid providing guidance about the path forward for interest rates, but did nothing to convey an urgency to raise them later this month.
A new railway corridor: How Nanning links Chinese and ASEAN markets
A new railway corridor: How Nanning links Chinese and ASEAN markets
Watch: Did Tesla really just unveil a flying car?
Tesla CEO Elon Musk showcased the vehicle at a facility owned by his SpaceX company, which helped develop the model.
China and Europe are building new connections in aerospace
China and Europe are building new connections in aerospace – from skies to stars. On the one hand, their deep industrial partnership is scaling global civil aviation to new heights. On the other hand, scientific collaboration is opening new possibilities for space exploration and deepening our understanding of the Sun-Earth system.