We must be prudent after big spending, says ChanPaul Chan, seen visiting a karaoke club, said the HK$300 billion spent on epidemic measures and the budget's relief package will provide a higher than 5 percent support to the GDP of Hong Kong. The fiscal reserve is projected to drop to about HK$800 billion, equivalent to 12 to 13 months of government spending - a level close to what it was after the SARS outbreak in 2003, Chan said. However, Hong Kong's economic recovery is fraught with challenges, due to the pandemic-wrecked global economy and Sino-US tensions, he said. When the economy falls into a deep recession, the government must support it through counter-cyclical measures, Chan said. Hong Kong's unemployment rate stood at 6.1 percent, with unemployed persons surging to nearly 250,000 - double the figure in the fourth quarter last year - reflecting how hard the pandemic hit many industries.

Source: The Standard September 20, 2020 19:07 UTC