E-vouchers a short-term boost to retail sector under pressure

Financial Secretary Paul Chan Mo-po believed that the latest round of consumption vouchers could be a short-term boost to the economy. However, the external factors and the Covid-19 epidemic are still dragging the city's economic activities to return to normal.

In a blog post Sunday, the financial chief wrote that the second phase of consumption vouchers in batches were disbursed to about 6.36 million citizens yesterday. It means nearly HK$15 billion in consumption power has been injected into the local retail and catering market.

Chan mentioned that although e-vouchers could play a short-term boost and help stabilize market confidence, the retail market performance will face immense pressure alongside the deteriorating external environment.

He warns that elevated inflation and interest rate hikes by central banks around the world, also the heightened geopolitical tensions and supply-chain disruptions add uncertainties.

The market is worried that the global recession may be imminent, Chan added, and the stock and property market of Hong Kong were put under pressure.

In addition, Chan noted that the forthcoming 20th National Congress of the Communist Party of China would provide an essential direction for Hong Kong's future development. He stresses that the city must have a deep understanding of the planning of the mainland to integrate into the country's overall development.
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