Hong Kong budget: full economic recovery will take time, say experts, despite expectation that HK$100 billion infrastructure spending spree will fuel growth
- Financial Secretary Paul Chan predicts economy will bounce back to tune of between 3.5 per cent and 5.5 per cent this year
- Money ploughed into public works projects to focus on health-related facilities and housing
Hong Kong will bank on HK$81 billion of one-off sweeteners and spending HK$100 billion in public works to pull the city out of its worst recession ever, but economists said a full recovery would take time.
While there were fewer sweeteners, which have been cut by one-third from a year ago, Chan said the roll-out of a citywide vaccination drive this week, significant capital expenditure in public works, and capitalising on rising business opportunities across the border would help revive the economy.
03:43
What Hong Kong’s 2021-22 budget means for residents of the city
A government source said the sweeteners, plus short and long-term spending and other measures would raise the city’s gross domestic product by 2 per cent this year.
“In the medium term, Hong Kong will continue to benefit from the ongoing development of mainland China and the shift in global economic gravity from West to East,” said Chan. “The economic outlook is positive.”
