HONG KONG: Hong Kong is expected to announce measures to boost the city’s economy in its annual policy address on Wednesday (Oct 16), including slashing liquor tariffs, as it seeks to revive the financial hub which has been struggling to recover since the pandemic.
Hong Kong’s small and open economy has felt the ripple effects of a slowdown in the Chinese economy. The city’s economy expanded by 3.3 per cent in the second quarter from a year earlier, and is forecast to grow 2.5-3.5 per cent for the year.
Although tourism numbers have rebounded since COVID-19, with 46 million visitors expected this year, consumption and retail spending remain sluggish, while stock listings have dried up and capital flight remains a challenge.
In February, Hong Kong’s financial secretary announced new measures spanning property, tourism and financial services, noting headwinds including a complex geopolitical environment and ballooning budget deficits.
But in a meeting last month between China’s top official on Hong Kong affairs, Xia Baolong and Hong Kong leader John Lee, Xia emphasised a need for further “reforms” to spur economic growth, in line with China’s national strategy.
He called on the Hong Kong government to “unite and lead all sectors of society” to promote reforms, while urging businessmen to help in this drive.
One commentator in the state-run China Daily said Xia’s speech suggested a need for “economic and social reforms”.
