,Hong Kong

Hong Kong runs fiscal deficit for first time in 15 years

The government expects the deficit to widen to 4.8% of the GDP for next year.

Hong Kong recorded a deficit of $37.8b for 2019-20 or about 1.3% of the city’s gross domestic product (GDP), finance secretary Paul Chan revealed in his budget speech.

This is the first time that Hong Kong ran a fiscal deficit in 15 years.

Chan said that the trade tensions, coupled with the protests that started last June, significantly dampened economic momentum. In the past months the government announced measures that cost about $30b to help boost the economy amidst these times—which, in turn, drove the city to a fiscal deficit.

“In the past six months, I have announced four rounds of relief measures costing over $30b. These measures, together with the $30b Anti-epidemic Fund established in response to the recent novel coronavirus outbreak, resulted in a deficit of about $37.8b for 2019-20, which is about 1.3% of GDP,” stated Chan.

Noting the government’s countercyclical fiscal measures and continued recurrent expenditure, Chan forecasts lower tax and land revenues, and in turn is expecting the fiscal deficit for 2020-21 to soar to $138.1b, or 4.8% of the GDP.

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

About $270m of the aid will be given as one-off cash subsidies to practitioners.
The rules will be implemented on 19 January.
A possible rate hike in March will also positively affect the bank.
Eligible customers who will apply online can get a 20% first-year premium discount.
Chow Tai Fook Jewelry Group from China/HK SAR was amongst the top 10 companies. 
About 76% have expressed their intentions to look for a new job. 
For the quarter ended, there was a $6.6b worth of sales recorded.
HK online sales could grow by 10% in two to three years.
This includes being more lenient in granting leaves for parents of school children.
Non-residents coming from the country to be barred entry.
Wei Mei Tan and Michael Wong will see their roles take effect immediately.
It vowed to align its resources with the Northern Metropolis Development Strategy.
Following this will be a week of self-monitoring and a virus test on the 19th day.