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Stocks Plummet As Budget Measures Announced

HONG KONG

Stock markets under pressure in Hong Kong as the government unveils its budget, key comments below:

  • Hong Kong plans over HKD 120b counter-cyclical measures
  • Budget to focus on stability and helping people out of pandemic
  • To see positive economic growth this year; forecasts 3.5%-5.5%
  • Sees economy growing avg 3.3% pa in real terms 2022-2025
  • 2021 headline inflation forecast 1.6%
  • 2021 underlying inflation forecast 1%
  • To give HKD 5,000 consumption coupons to residents
  • Sets aside HKD 15b for guaranteed loans to unemployed
  • Hong Kong also reported 2020 GDP at -6.1%, in line with estimates

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