The economy shrank 6.1% in 2020 amid the pandemic, the worst annual economic performance on record. It was the second straight year the economy contracted following a GDP fall of 1.2% in 2019. GDP in the fourth quarter of 2020 dropped by 3% from the same period the year before, a slight improvement from a 3.6% contraction in the three months ending March.
The Financial Secretary Paul Chan also reiterated the need to maintain the Hong Kong-US dollar peg, which he said had provided a good social and business environment. However, he conceded the policy would tie the government’s hands in tackling economic cycles by means of adjusting exchange or interest rates.ng September. Meanwhile, Financial secretary Paul Chan rejected suggestions to issue bonds to raise funds to cover deficits, warning it could shake the public’s confidence in the soundness of the city’s finances and in turn affect fiscal stability and security.
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