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Hong Kong to spend $15.4 billion in fiscal measures to stabilise virus-ravaged economy

Hong Kong to spend .4 billion in fiscal measures to stabilise virus-ravaged economy
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Hong Kong to spend .4 billion in fiscal measures to stabilise virus-ravaged economy

Hong Kong to spend $15.4 billion in fiscal measures to stabilise virus-ravaged financial system

Finance Minister Paul Chan predicted that in comparison with the financial contraction of 6.1% final 12 months, the financial system is ready to develop 3.5% to five.5% this 12 months

Hong Kong to spend $15.4 billion in fiscal measures to stabilise virus-ravaged economy

Hong Kong Finance Minister Paul Chan, heart, attends a press convention on price range for 2021-22 in Hong Kong, Wednesday, Feb, 24, 2021. AP

Hong Kong: Hong Kong will introduce 120 billion Hong Kong {dollars} ($15.4 billion) in fiscal measures to assist companies and residents impacted by the coronavirus pandemic, because it seems in the direction of financial progress later this 12 months following a recession in 2020.

The measures — which embody tax reduction, loans for the unemployed and consumption vouchers — are aimed toward stabilizing the financial system, Hong Kong Finance Minister Paul Chan stated in a price range speech Wednesday. He forecast the financial system is ready to develop 3.5 % to five.5 % this 12 months, in comparison with the financial contraction of 6.1 % in 2020.

The price range for 2021 “goals to alleviate the hardship and strain brought on by the financial downturn and the epidemic,” Chan stated.

Unemployed residents can get loans capped at 80,000 Hong Kong {dollars} ($10,300) in a program that postpones funds for the primary 12 months and expenses one % curiosity. The measures come after Hong Kong final week reported a 7 % jobless price between November and January, the best since April 2004.

Vouchers price 5,000 Hong Kong {dollars} ($645) will even be issued in instalments to residents to spice up consumption. Companies and people will even obtain tax reduction.

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Chan stated that Hong Kong’s fiscal deficit is at a report excessive after the federal government final 12 months spent 300 billion Hong Kong {dollars} ($38.7 billion) on supporting measures, together with a money handout to residents and wage subsidies for companies.

He additionally stated that mainland China’s financial system was “essentially sound” regardless of uncertainties from the epidemic and in US-China relations. Hong Kong, as a semi-autonomous Chinese language metropolis, will profit from this.

“Within the medium time period, Hong Kong will proceed to profit from the continuing improvement of the mainland and the shift in world financial gravity from West to East,” Chan stated.

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