Global Times recently reported, based on the new projections that Hong Kong’s Financial Secretary Paul Chan Mo-po issued, that the city government is expecting a current fiscal year deficit. This will be the first in the past 15 years. With the social stability concerns in the background, tax revenues and government land sales suffered a sharp decline this year. The bailout cost for the current economic downturn added to the loss. The Hong Kong government report showed multiple economic sectors are stepping into “deep winter,” such as building construction, retail, food services and tourism. Unemployment and bankruptcy rates are growing rapidly. According to some local lawmakers, more and more employers are planning to close down their businesses. Next year is expected to be very challenging also.
Source: Global Times, December 2, 2019