Hong Kong economy to shrink between 4% and 7% in 2020, says finance chief

HONG KONG (BLOOMBERG) – Hong Kong Financial Secretary Paul Chan expects the city’s economy to contract as much as 7 per cent this year amid the global coronavirus pandemic, much worse than his original projection when presenting the budget in February.

The economy will contract between 4 per cent and 7 per cent, Mr Chan said, according to a report from Radio Television Hong Kong. Hong Kong Economic Times said Mr Chan made the comments in the Legislative Council.

Hong Kong’s advance first-quarter gross domestic product reading due May 4 may be worse than what the city had experienced during the global financial crisis and the Asian financial turmoil, Chan said.

Mr Chan had forecast 2020 GDP in a range of -1.5 per cent to 0.5 per cent in his Feb 26 budget.

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