Hong Kong’s Fiscal Package Shields the Most Vulnerable
Total government support since the Hong Kong protests started in June is now at more than HK$35 billion, or about 1.2% of 2018 GDP. Hong Kong is taking a practical and, in Bloomberg Economics’ view, sensible approach in its latest fiscal support package: Using government spending to try to reverse damage from the trade war and months of civil protests isn’t realistic -- but trying to shield those most vulnerable to the slump in the economy is. The jobless rate is set to rise, as retailers, hotels and restaurants shed workers. Using the HK$10 billion package to provide relief should ease the blow -- even if it won’t move the needle on growth.
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