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Bloomberg
The Hong Kong government is set to announce a fresh round of stimulus measures to shore up the crippled economy, with a local media report saying the total could exceed $12.9 billion.
The aid package will mostly be dedicated to subsidising wages in sectors hit by closures and restrictions imposed to curb the deadly virus, according to the South China Morning Post. The newspaper earlier reported the package would be worth HK$30 billion. The Executive Council is meeting to discuss
the measures and an announcement was expected to come on Wednesday, the Hong Kong Economic Journal reported, citing unidentified people.
The Hong Kong government is under pressure to support an economy that had already slid into recession following months of political unrest and is further pressured by the anti-virus measures.
In February, the government announced a HK$30 billion anti-epidemic fund and a HK$120 billion relief package in this year’s budget centered on a HK$10,000 handout to all permanent residents age 18 and above. Hong Kong has fared better than many other regions in controlling the disease, with confirmed cases at about 935 on Wednesday. Yet a second wave of registered infections brought by residents returning from overseas has caused alarm and spurred discussion of tighter restrictions including closing all non-essential businesses.
If the package exceeds HK$100 billion that would equate to more than 3% of the city’s economy and is “the way to go,†said to Alicia Garcia Herrero, chief Asia Pacific economist at Natixis in Hong Kong.