Finance Chief: Hong Kong facing ‘Tsunami-Like’ shocks

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HONG KONG: Hong Kong is facing 'tsunami-like” shocks, and may incur a record budget deficit in the next fiscal year as the city counts the costs of the Covid-19 (coronavirus) outbreak after months of social unrest, Financial Secretary Paul Chan said on Sunday (Feb 16).

A woman wearing a face mask sits at the waterfront against the Victoria Habour in Hong Kong on Sunday . Hong Kong is facing"tsunami-like” shocks, and may incur a record budget deficit in the next fiscal year as the city counts the costs of the Covid-19 outbreak after months of social unrest, Financial Secretary Paul Chan said. - AP

The impact of the epidemic on the Hong Kong economy is being felt beyond retail, food and beverage and tourism-related industries, Chan said in a blog post Sunday. "In addition to launching counter-cyclical relief measures to support the economy, the government’s recurrent expenditure in the past 10 years has continued to increase significantly, and the weakening economy has significantly reduced government revenue from tax and land,” Chan wrote, elaborating on the deficit.

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