Whereas restoring international journey was essential to the town’s place as a global monetary centre and aviation hub, authorities should stay cautious, he warned.“Reopening our border with the mainland is essential. We’re engaged on it,” Chan mentioned. “On the identical time, we’re additionally working to restart … on a really cautious foundation, journey between Hong Kong and the worldwide neighborhood as a result of it will be important for us as a global metropolis.”
01:56 HK monetary secretary Paul Chan on border reopening with mainland China and metropolis’s financial future However transferring forward was no simple matter.“To combat the pandemic, we have now the general public well being consideration, financial consideration, the [need for] folks to return to regular life. There’s at all times a tug of warfare attempting to stability these three,” Chan mentioned.Hong Kong has remained in a close to lockdown for about 17 months, with worldwide journey at a standstill and tourism paralysed by the Lam has caught with a “zero infections” goal in Hong Kong’s combat in opposition to Covid-19 and made clear her precedence is to reopen borders with the mainland.Hong Kong has confirmed 50 infections to this point this month, 48 of which have been categorised as imported or associated to imported circumstances. It has recorded 11,978 confirmed circumstances and 212 associated deaths as of Saturday.The three circumstances confirmed on Sunday have been all imported and concerned mutant strains, with the carriers not displaying any signs. Travellers cross to Shenzhen on the Lo Wu management level on the Hong Kong aspect again in February final yr. Picture: Edmond So Earlier final week, a plan to ease an entry ban on stranded college students and employees from extraordinarily high-risk areas equivalent to Britain and the Philippines was abruptly placed on maintain, with the associated to ongoing negotiations with mainland officers on cross-border journey.Beijing doesn’t need Hong Kong to change into a weak hyperlink in its tight nationwide defences in opposition to Covid-19, which might occur if both sides maintains completely different restrictions on abroad arrivals.For now, solely three border crossings are open. Residents coming back from some elements of the nation by way of the Return2hk scheme are exempted from the town’s 14-day obligatory quarantine, whereas these heading to the mainland are topic to quarantine necessities there.Chan mentioned it remained unsure when curbs on cross-border journey can be eased. Monetary Secretary Paul Chan. Picture: Nora Tam Hong Kong’s enterprise sector has complained bitterly about its executives being unable to journey freely to run operations on the mainland, the town’s largest commerce associate and supply of holiday makers.He expressed sympathy, however mentioned that for now, companies should additional faucet expertise to manage.“Earlier than the border will be reopened, companies have to undertake extra expertise, act quicker by way of digitalisation and should should rethink the best way they conduct their enterprise,” Chan mentioned.“Even these with cross-border enterprise may have to separate their workers into groups for journey to the mainland. Not like prior to now after they made frequent quick journeys, they now might should make longer journeys, by rotation.”Chan mentioned Hong Kong’s financial prospects hinged on its pandemic-control standing and the way quickly worldwide and mainland travellers might return.The financial system had proven indicators of restoration because the starting of the yr and the momentum had continued into the second quarter, which recorded robust progress, he mentioned.The minister hoped financial growth would exceed the forecast of three.5 per cent to five.5 per cent he made in his price range handle in February. Any choice to improve the forecast can be introduced in the course of subsequent month, he mentioned.Hong Kong swung from its worst recession on document to its quickest financial progress in additional than a decade within the January to March interval, in contrast with the primary quarter of final yr.Within the close to time period, gross home product can be boosted by the federal government’s HK$5,000 (US$643) consumption voucher scheme.A complete of seven.2 million Hong Kong everlasting residents and up to date migrants from the mainland are eligible for these vouchers to spend in purchasing centres and eating places, amongst others. No less than 88 per cent had registered for the programme and would obtain their first batch of e-vouchers starting initially of subsequent month.“The consumption vouchers will give GDP progress an extra momentum,” Chan mentioned.
06:35 Hong Kong shopper watchdog: watch out about purchases by means of e-consumption voucher scheme There have been different constructive financial indicators this yr. Month-to-month exports have grown at a double-digit tempo since December, whereas the unemployment price within the three months to June 30 – a degree not seen for greater than a yr.However Chan warned it was nonetheless too quickly to rejoice, saying: “I see the unemployment price coming down, however it’s too early to be relieved as a result of folks within the hardest hit sectors are nonetheless discovering it very tough.”For instance, he mentioned, whereas eating places have fared higher this yr, the retail and tourism associated sectors have been nonetheless struggling. “The development is just not even,” Chan mentioned.For the April to June quarter, the unemployment price within the meals and beverage trade eased 1.3 share factors to 10 per cent, whereas in retail it improved by 1.4 factors to 7.5 per cent, and in development, by 1.4 share factors to eight.9 per cent.OCBC Wing Dangle Financial institution economist Carie Li Ruofan mentioned Hong Kong’s total financial restoration hinged on the restoration of cross-border journey.“Tourism associated industries like retail and aviation are nonetheless in deep water,” she mentioned, estimating GDP would develop between 5.5 per cent and 6 per cent this yr.