Financial News
Written by: Zhang Weilun
2020-05-13 21:35
Last update date: 2020-05-13 21:35The rating agency Standard & Poor's rated the Hong Kong government's credit rating as "AA +". However, as the epidemic caused the economic downturn in the mainland, it continued to impact the local retail industry, resulting in the risk of the local government's credit rating being downgraded, which is consistent with other regions.
Yin Rui, deputy director of the S & P Sovereignty and International Public Industry Finance Department, pointed out that the government uses reserves to launch anti-epidemic measures, or may affect future credit strength.
Under the epidemic, the Hong Kong economy was hit. It is expected that the Hong Kong economy will contract by 3.9% this year, and the economy will rebound by 4.8% next year.
S & P Global Rating Asia-Pacific economist Vishrut Rana pointed out that as the epidemic in Hong Kong gradually eased, the government gradually lifted restrictions and the normalization of the mainland economy is expected to stimulate local consumption. However, the economies of Europe and the United States have contracted sharply, which is expected to spread to Hong Kong. In addition, Hong Kong's economy depends on tourism. It is expected that the recovery time will be longer, at least one year.
S & P Global Ratings Hong Kong Economy