FS Says Strong GDP Growth Won't Revive Job Market

"); jQuery("#212 h3").html("

Related News Programmes

"); });

2021-04-28 HKT 15:06

Share this story

facebook

  • FS says strong GDP growth won't revive job market

Financial Secretary Paul Chan said on Wednesday that the GDP for the first quarter in the year will show "pretty strong growth", but warned that unemployment rate will probably remain high until cross-border travel resumes.

A formal announcement on the growth figure will be made next week.

Chan made his comment after the HK$120 billion counter-cyclical budget was passed in Legco with 40 votes for, one against and one abstention.

Chan said the fact that the economy contracted by nine percent during the same period last year means there will be a relatively strong positive growth this year by comparison.

The official added the gradual recovery in local consumption and "impressive improvement" in trade markets overseas also helped boost the economy.

But he said the GDP improvement may not translate into a marked decrease in the unemployment rate, which stood at 6.8 percent in March and was slightly down from the 17-year-high of 7.2 percent in February.

The financial chief said the employment situation would depend on whether cross-boundary travel could resume, and university students graduating in the summer would also put pressure on the jobless rate. .

"Because at the end of the day, Hong Kong is a very small open economy. Domestic consumption [alone] would not be able to sustain enough strong growth for us," he explained.

"We need to continue with external trade. We need... quality tourism to come back. This takes time."

RECENT NEWS

ZA Bank Brings Nasdaq Data To Hong Kong, Expanding US Stock Access And Investor Education

ZA Bank and Nasdaq have announced a collaboration aimed at enhancing digital wealth management in Hong Kong and interna... Read more

Hong Kong To Study One‑Stop Infrastructure For Equities, Bonds And Digital Assets

The Hong Kong Monetary Authority’s (HKMA) CMU OmniClear and the Hong Kong Exchange (HKEX) are set to begin a study on... Read more

Hong Kong To Issue First Stablecoin Licenses In March, Expand Crypto Regulation

Hong Kong will issue its first licenses for fiat-referenced stablecoin issuers in March and introduce new legislation l... Read more

MSIG Joins US$6B IFC Credit Insurance Facility To Boost Emerging Market Lending

MSIG USA and Mitsui Sumitomo Insurance (MSI Japan), together referred to as MSIG, have joined a new insurance-ba... Read more

Why The $2 Trillion Stablecoin Prediction Is Too Low

McKinsey estimates the stablecoin market will hit $2 trillion by 2028. But according to Sam Lin, COO of dtcpay, even th... Read more

RedotPay Eyes US IPO With Potential US$1 Billion Raise

RedotPay is reportedly exploring an IPO in the US that could raise more than US$1 billion, according to people famili... Read more