Hong Kong revises growth forecasts and unveils $2.4bn spending package as protests and trade war hit economy
Hong Kong’s government has revealed a ($2.4bn) £2bn spending package after warning of lower economic growth in the wake of unprecedented political protests and a US-China trade war.
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Financial Secretary Paul Chan unveiled plans to slash taxes and introduce subsidies today in a bid to rejuvenate the local economy after several months of mass social unrest.
“The recent social incidents have hit the retail trade, restaurants and tourism, adding a further blow to an already-weak economy,” said a statement issued by Chan’s agency.
Gross domestic product (GDP) forecasts have been cut from two-three per cent to zero-one per cent.
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Chinese paramilitary forces have been carrying out exercises on the border with Hong Kong today as the political crisis in the territory roles on.
News agency Reuters reported that hundreds of members of China’s People’s Armed Police could be seen conducting an exercise at a sports stadium in Shenzhen today.
Parking spaces at the stadium were filled with more than 100 paramilitary vehicles, including troop trucks, buses, jeeps and armoured personnel carriers.
Hong Kong will release second-quarter data and its latest economic forecasts on 16 August.