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Hong Kong’s HK$5,000 consumption voucher scheme will give private expenditure growth an extra boost, says finance chief
- Private expenditure experienced a 1½-year contraction but continued to improve since the beginning of 2021, financial secretary notes
- Paul Chan says jobs market and unemployment rate will improve as private consumption increases
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Hong Kong’s finance chief expects the city’s HK$5,000 electronic voucher sc heme, which closed for registrations on Saturday, to further stimulate private consumption growth and boost the economy.
Financial Secretary Paul Chan Mo-po on Sunday said private consumption expenditure had experienced a 1½-year contraction but continued to improve since the beginning of 2021.
“After an increase of 2.1 per cent in the first quarter, it further increased by 6.8 per cent in the last quarter. As the effect of the consumer coupons began in August, it is believed the scheme will further stimulate the growth of private consumption,” Chan wrote on his official blog.
As of Saturday evening, 6.92 million out of an eligible 7.2 million people had registered for the consumption vouchers, with the government releasing the first HK$2,000 (US$257) handout to about 75 per cent of applicants from August 1. The HK$36 billion (US$4.63 billion) scheme is designed to boost local spending and accelerate the city’s economic recovery amid the Covid-19 pandemic.
Chan said the jobs market and unemployment rate would improve as private consumption increased given one-third of workers were engaged in the retail, catering, tourism, logistics and transport industries, which were closely associated with the consumer market.
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