Hong Kong finance chief not optimistic about city’s economy but warns against excessive pessimism as pandemic eases
- Financial secretary doubles down on prediction city will record more than HK$100 billion deficit
- Paul Chan says it is more important than ever for him and other officials to travel abroad to promote Hong Kong
Hong Kong’s finance chief has said he is not optimistic about this year’s economic outlook, but cautioned against excessive pessimism as mainland China’s growth remains positive and the coronavirus pandemic has started to ease.
Financial Secretary Paul Chan Mo-po doubled down on his earlier prediction it was “inevitable” the city’s deficit would top HK$100 billion (US$12.7 billion) for the financial year ending in March, while fiscal reserves would fall to about HK$800 billion from more than HK$900 billion.
“It is not a small number either,” he said. “Our reserve was supposed to be stored for the rainy days, and it should be used when the environment is not good. During these recent times, residents have been facing much pressure. We want to safeguard our economy and employment, so that people’s minds can be more at ease.”
As the economy was facing challenges, it was all the more important for him and other senior officials to travel abroad to meet business leaders and government officials in Asia to promote the city, he added.
After returning from the Middle East at the end of last month, Chan left Hong Kong on Sunday afternoon to take part in the G20 summit in Bali, Indonesia, as a member of the Chinese delegation.
