Hong Kong is giving $1,200 to residents to help boost its economy
Hong Kong is set to hand out a cash gift to permanent residents in a bid to boost spending in its recession-hit economy.
As part of the annual budget, $10,000 Hong Kong dollars ($1,200, £985) will be given to seven million people over the age of 18.
The economy has taken a huge hit after months of political unrest and the impact of the rapidly spreading coronavirus.
The city has confirmed 81 cases and two deaths.
Hong Kong’s financial secretary Paul Chan said: “Hong Kong’s economy is facing enormous challenges this year. After careful consideration, I have decided to disburse HK$10,000 to Hong Kong permanent residents aged 18 or above, with a view to encouraging and boosting local consumption on the one hand, and relieving people’s financial burden on the other”.
The handouts are part of a relief package that will lower public rents as well as waive domestic property rates.
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Some of the money for the package will come from a special fund that has been established “in view of the deteriorating economic and employment conditions as a result of the novel coronavirus epidemic,” Chan said.
Hong Kong’s economy is suffering after months of political protest which has seen pro-democracy activists clash with the police.
Chan warned that the territory will record its first budget deficit in 15 years because of the recession that began in the third quarter of 2019.
The impact of the coronavirus has also hit stocks. The Hang Seng index closed 0.73 per cent lower.
Burberry has said that the virus outbreak has had more of an impact on its sales than last year’s Hong Kong protests. The luxury brand has had to close 24 of its 64 stores in China.
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