Hong Kong, 19th January: Hong Kong’s government is loosening the purse strings. The intense protests combined with the Wuhan coronavirus have pushed Hong Kong’s economy into a recession and as a result, the administration of Carrie Lam has decided to operate in a deficit again in 2020-21. This is an unusual financial position for Hong Kong.

The territory’s Financial Secretary, Paul Chan, forecasts that the 2020-21 deficit is expected to surpass the US$10 billion deficit of the year before. The good news is that the Hong Kong government is sitting on a mountain of cash (US$140 billion). The city’s Chief Executive, Carrie Lam, unveiled a reoccurring “welfare package” of US$1.3 billion that is meant to pacify Hong Kong’s angry and frustrated citizens.