HK On The Edge Of Technical Recession: Paul Chan

Financial Secretary Paul Chan has warned that Hong Kong will slip into a technical recession – if the economy continues to shrink due to the ongoing China-US trade spat, as well as the city's social unrest.

In an interview with the mainland's Global Times, the SAR's top financial minister predicted a deterioration in the SAR's economy in the third quarter.

That's due to the Sino-US trade war, he said, and the fact that the recent street protests "take a toll on various sectors ranging from tourism to retail".

Chan told the state-backed newspaper that it's possible that the city's GDP will continue its downward trend in the third quarter, signalling a technical recession with two consecutive quarters witnessing GDP fall.

Although he explained that this would also depend on whether the protests ease off, he said the SAR government is determined to help local businesses stay afloat and it will decide whether more relief measures are needed to help them.

The financial chief added that Chief Executive Carrie Lam will introduce more housing-related measures in her Policy Address next month.

He also urged young people to consider developing their careers in the Greater Bay Area, saying they would have very good prospects there.