'Consumption Vouchers Can Help Economy Bounce Back'

The General Chamber of Commerce on Monday called on the government to hand out another round of consumption vouchers to boost the local economy, saying that although companies it surveyed are expecting business to pick up this year, they are unlikely to return to pre-Covid levels.

The chamber's CEO, George Leung, told a press conference that while the border reopening with the mainland is good news for those in the retail and tourism sectors, the global economic outlook is fraught with uncertainty.

"It means that Hong Kong is still not facing a full-fledged recovery," he said. "I think it might take somewhat more years before we can go back to pre-pandemic levels."

Leung added that dishing out another round of consumption vouchers will help spur domestic demand.

"At the beginning of recovery, the sentiment still remains fragile, and the effect is not going to be seen until the middle or later part of this year. So if there is another round of stimulation, say, another round of consumption vouchers, that will help to sustain the sentiment and get the recovery much faster in place."

Leung also said authorities should work on attracting more middle or lower-ranking workers to the city – instead of focusing only on high-end talent – as companies from different sectors continue to face manpower shortage.

Meanwhile, the chamber said it’s forecasting a 3.8 percent growth in Hong Kong's real gross domestic product this year, after a predicted contraction of 3.3 percent last year.

"If the global economy goes faster than we expected, and the pandemic situation is under control [without] extra requirement for crossing the border, then we should see a somewhat even stronger growth rate," Leung explained.