Financial News
Written by: Zhang Weilun
2020-10-26 11:07
Last update date: 2020-10-26 11:07
The Financial Secretary Chen Maobo published a blog stating that from the perspective of the three-headed carriage that promotes Hong Kong's economy, Hong Kong's economy may be at a low level of consolidation in the third quarter. The continuous economic recovery of the Mainland has become the main force supporting Hong Kong's economy.
He pointed out that the economy of the Mainland in the third quarter grew by 4.9% year-on-year. In September alone, exports in dollar terms rose by 9.9%, and imports rose by 13.2%.
Both sets of figures indicate that Hong Kong's foreign trade performance in the third quarter will improve accordingly.
Even though Hong Kong’s merchandise exports have fallen for six consecutive quarters, the decline has narrowed from 7.4% in May this year to 2.3% in August. It is expected that the export figures will improve significantly in September.
In terms of consumption, he pointed out that since September, social distancing measures have been gradually relaxed, and many citizens have increased their travel and consumption. Private consumption is gradually improving, but the market still maintains a wait-and-see attitude towards fixed investment.
Chen Maobo pointed out that in general, based on the current situation, the Hong Kong economy, which has been in contraction for four consecutive quarters, has not yet escaped the recession pattern. However, the economic contraction in the third quarter will be significantly improved from the 9% average decline in the first two quarters of this year. It is also related to the lower base in the same period last year.
With the economic recovery momentum in the Mainland and the gradual improvement in local consumption sentiment, the pressure of economic contraction may be slightly relieved if the epidemic is controlled.
He also pointed out that the epidemic situation in the Mainland has been stabilized and the economy is continuing to improve. If the smooth flow of personnel and commerce between the two places can be restored, and the "internal circulation" of the Mainland is closely linked, then even if the "external circulation" is temporarily blocked due to the epidemic, the Hong Kong economy will remain Can greatly restore anger.
Compulsory testing for different scopes and target groups, and even large-scale compulsory testing, is an indispensable tool for epidemic prevention.
This is not only conducive to controlling the epidemic, but also creating conditions for resuming economic activities and alleviating the economic pressure on wage earners and enterprises.
Hong Kong economy Chen Maobo's new crown pneumonia
