Chen Maobo expects that Hong Kong's economy will show strong recovery momentum in the second half of the year and is expected to resume positive growth throughout the year

Financial News

Written by: Xu Shihao

2021-01-03 10:57

The last update date: 2021-01-03 10:57

Financial Secretary Chen Maobo said that in the past two years, Hong Kong's economy has been hit by tensions in Sino-US relations, local social events, and the new crown pneumonia epidemic. It has shown negative growth for two consecutive years, the first time in records.

He said that entering 2021, the situation may be difficult, but turning points are gradually emerging.

He estimated that the first half of this year will still face major challenges, and the second half of this year is expected to show a strong momentum of recovery. The economy is expected to return to positive growth throughout the year.

However, the speed and strength of economic recovery depends on a number of internal and external factors, among which changes in the epidemic will be the most critical variable.

He said that before the epidemic can be effectively controlled, more vigorous epidemic prevention measures will inevitably need to be continued, which will inevitably put pressure on the local consumption atmosphere and economic activities.

Cross-border movement of people and tourism activities may also take a long time to resume.

Companies are still facing a severe operating environment for the time being, and employment and income conditions are unlikely to improve significantly in a short period of time.

This means that the economy will still face greater challenges in the first half of this year.

Chen Maobo said that Hong Kong's economy has set a record of negative growth for two consecutive years, but it is expected to resume positive growth this year.

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However, as different levels of epidemic prevention and control work are effective, and vaccines can be gradually and widely vaccinated as expected, the effectiveness of epidemic control and control is expected to gradually improve.

In this way, the recovery momentum of Hong Kong’s economy is expected to increase significantly in the second half of the year. However, there are still many risks in the future. Of course, uncertainties such as the development of Sino-US relations and the geopolitical situation will continue to be closely watched. Many governments have responded to the epidemic. Increasing spending has caused many economies to build high debts, and the financial risks that may arise cannot be ignored.

He pointed out that this year is the first year of the "14th Five-Year Plan", and the country's development will be based on reform and innovation as the fundamental driving force to accelerate the formation of a new development pattern with domestic and international cycles as the mainstay and mutual promotion of domestic and international cycles.

The Greater Bay Area will be an important entry point for Hong Kong. Promoting the development and success of the Greater Bay Area has also become the key to Hong Kong's own success.

Hong Kong has an obvious role as an "intermediary" and "facilitator" in the development of the country's external circulation. It can give full play to its advantages in finance and international business networks, and provide professional, business and high value-added services that are in line with international standards.

Actively participating in the domestic and international dual-cycle development will create broader development space for Hong Kong.

Chen Maobo