Editorial | Lam should produce concrete measures for city’s economic growth
- By helping Hong Kong weather the coming storm, the government will not only help relieve hardships but restore some credibility
Hong Kong’s economy is facing a perfect storm. Shop operators across the city know all about it, many having to shut their doors to avoid continuous protests and mayhem.
Chief Executive Carrie Lam Cheng Yuet-ngor yesterday announced Financial Secretary Paul Chan Mo-po would look into ways the government could ease the burden of businesses and workers.
Chan and Commerce Secretary Edward Yau Tang-wah have presented gloomy numbers to quantify the damage. Chan said Hong Kong recorded growth of just 0.6 per cent year on year for the second quarter. But on a quarter-to-quarter comparison, the GDP actually dropped by 0.3 per cent.
Meanwhile, retail sales in June had slumped by 6.7 per cent. One more negative quarter and Hong Kong will technically enter a recession.
Yau said tourist numbers at the start of the month were down 31 per cent on the same time last year, while hotel occupancy rates in July had also fallen by double digits. He noted 22 countries have so far issued travel advisories.
Economists estimate that Monday’s citywide strike and protests alone cost the city between HK$300 million and HK$2.6 billion (US$38 million to US$332 million). Of course, the economic gloom is not just about the current anti-government protests.
