Even though the coronavirus pandemic has wreaked havoc on the global economy, Hong Kong’s financial chief says he can now see signs of an international recovery.
Financial Secretary Paul Chan Mo-po told an online conference on Monday the global economy was in the process of bottoming out from the devastating impact of the spread of COVID-19 in the second half of the year.
It’s worth noting that the current global industrial landscape and supply chain structure are by and large the outcomes of market orientation. Any change incurred by political reasons will be rather costly and hard to be successful
Paul Chan Mo-po,
financial secretary
But for a recovery to occur, major world economies must successfully curb the spread of the virus. They must also ensure businesses keep operating — backed by massive fiscal and monetary stimulus measures, Chan said.
Earlier this month, the World Bank projected a 5.2 percent contraction in global economic output for the year, in what could be the worst economic recession since the Great Depression of the 1930s — and nearly three times steeper than the 2009 global financial crisis.
The bank's estimates are more pessimistic than the global economic outlook released by the International Monetary Fund in April, which forecast that the global economy would shrink by 3 percent in 2020.
Chan said the bottoming out of the global economy will not be without challenges, noting that geopolitical tensions will affect the international economic outlook.
He said the world’s two largest economies would experience a difficult time in bilateral relations — with Sino-US trade and investment taking a hit.
“However, it’s worth noting that the current global industrial landscape and supply chain structure are by and large the outcomes of market orientation. Any change incurred by political reasons will be rather costly and hard to be successful,” Chan warned.
The financial chief revealed his Father’s Day wish in his blog on Sunday, saying he hopes that Hong Kong businesses will prosper and the city’s economy will recover soon.
Hong Kong is currently in a recession and one of its biggest challenges is growing levels of unemployment. The jobless rate has risen in the city for the eighth month and is now at its highest level for more than 15 years. Hong Kong's unemployment rate climbed to 5.9 percent in the period from March to May 2020, according the Hong Kong Special Administrative Region government.
