Coping with economic downturn trend in a proactive manner

According to the First Quarter Economic Report newly released by the Government, the Hong Kong economy had slowed down further. Strong headwinds in the external environment persisted in the first quarter of 2016.

Economic development is the pre-requisite for improving the people's livelihood. The Government of the Hong Kong Special Administrative Region has, for quite some time, called to public attention the downside risks to the economy and implemented a number of measures to boost the economy. As announced in the newly passed Budget, tax and short-term relief measures of about $39 billion will be rolled out to alleviate the burden of the public and support local enterprises. Coupled with other spending measures, these initiatives are expected to boost Gross Domestic Product by 1.1 per cent.

The Government will closely monitor changes in the external environment and in the local economy. I hope that the community will work together with the Government to seize all opportunities in promoting economic development.

May 13, 2016