Hong Kong distributes billions of dollars to its citizens

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Hong Kong decided to allocate a large sum of money to most of its citizens, to spend it in order to stimulate the stagnant economy as a result of the protests that erupted last year with the outbreak of the new Corona virus.

The city government said today, Wednesday, that this measure – which is the basic building block in a stimulus package worth $ 15.4 billion – will ensure that $ 1,280 is granted to all permanent residents who are at least 18 years old. About 7 million people will benefit from this program.

As reported Network CNN, Finance Minister Paul Chan warned that the city would post its first budget deficit in 15 years due to the recession that began in the third quarter of 2019. The situation is expected to get worse.

Chan said that the deficit in the next fiscal year until March 2021, is likely to reach a record level of 4.8% of the city’s GDP, adding: “The economy faces enormous challenges this year. The outlook is far from promising in the short term.”

The finance minister said during the budget presentation that Hong Kong’s economy “faced the headwinds” that penetrated last year, including the repercussions of months of mass protests, the ongoing US-China trade war and the global economic slowdown.

These issues pushed Hong Kong into recession, as the economy contracted last year by 1.2%, marking its first annual decline since the global financial crisis. Now, the city is facing the new Corona virus, which “dealt a severe blow to economic activity.”

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