The Hong Kong government has announced the largest relief fund in a decade to ease the economic impact brought by last year's anti-government protests and the coronavirus outbreak.

This comes at a time when Hong Kong confirmed it has entered its first recession for a decade.

Hong Kong's financial secretary Paul Chan Mo-po unveiled a 120 billion Hong Kong dollar relief package in his budget speech, including the much-anticipated cash handout for all adult residents in the city, despite a record fiscal deficit.

The relief measures are largely comprised of one-off payments, including handouts of 10,000 Hong Kong dollars to residents aged over 18, tax breaks for firms, and other subsidies.

<a href="https://www.wionews.com/world/hong-kong-with-surgery-masks-on-anti-govt-protesters-stage-sit-ins-amid-coronavirus-outbreak-282081">Also read: With surgery masks on, anti-govt protesters stage sit-ins amid coronavirus outbreak</a>

Chan said the disbursement of ten thousand dollars is aimed at boosting local consumption and easing people’s financial burdens.

"After careful consideration, I have decided to disburse $10,000 to Hong Kong permanent residents aged 18 or above, to encourage and boost local consumption on the one hand, and relieving people's financial burden on the other. This measure, which involves an expenditure of about $71 billion, is expected to benefit about seven million people," Chan said.

"The social incidents in the past months and the novel coronavirus epidemic have dealt a heavy blow to Hong Kong's economy. In the face of an economic downturn, we expect a decline in government revenue in the coming year. The government must exercise fiscal prudence to ensure healthy public finance. That said, I believe that the government should also do a bit more, notwithstanding the fiscal deficit, when we are facing an economic setback and overwhelmed by a heavy atmosphere."

This year, Hong Kong’s economy will grow by 1.5 per cent to 0.5 per cent in real terms, while the headline inflation rate and the underlying inflation rate will ease to 1.7 per cent and 2.5 per cent respectively.

In 2019, tens of thousands of Hong Kongers held various rounds of anti-government and anti-China protests which initially began against the extradition bill but transformed into pro-democracy demonstrations. The protests led to the various incidents vandalism and in which it recorded a massive loss of public property and businesses.

The former British colony returned to Chinese rule in 1997 amid promises it would be granted a high degree of autonomy and eventual universal suffrage.

China's tightening grip on the city and Beijing's failure to live up to its promises have fed the unrest, in one of the biggest popular challenges to the ruling Communist Party since the return.

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The Hong Kong government has announced the largest relief fund in a decade to ease the economic impact brought by last year's anti-government protests and the coronavirus outbreak.

The Hong Kong government has announced the largest relief fund in a decade to ease the economic impact brought by last year's anti-government protests and the coronavirus outbreak. This comes at a time when Hong Kong confirmed it has entered its first recession for a decade. Hong Kong's financial secretary Paul Chan Mo-po unveiled a 120 billion Hong Kong dollar relief package in his budget speech, including the much-anticipated cash handout for all adult residents in the city, despite a record fiscal deficit. The relief measures are largely comprised of one-off payments, including handouts of 10,000 Hong Kong dollars to residents aged over 18, tax breaks for firms, and other subsidies. Also read: With surgery masks on, anti-govt protesters stage sit-ins amid coronavirus outbreak Chan said the disbursement of ten thousand dollars is aimed at boosting local consumption and easing people’s financial burdens. "After careful consideration, I have decided to disburse $10,000 to Hong Kong permanent residents aged 18 or above, to encourage and boost local consumption on the one hand, and relieving people's financial burden on the other. This measure, which involves an expenditure of about $71 billion, is expected to benefit about seven million people," Chan said. "The social incidents in the past months and the novel coronavirus epidemic have dealt a heavy blow to Hong Kong's economy. In the face of an economic downturn, we expect a decline in government revenue in the coming year. The government must exercise fiscal prudence to ensure healthy public finance. That said, I believe that the government should also do a bit more, notwithstanding the fiscal deficit, when we are facing an economic setback and overwhelmed by a heavy atmosphere." This year, Hong Kong’s economy will grow by 1.5 per cent to 0.5 per cent in real terms, while the headline inflation rate and the underlying inflation rate will ease to 1.7 per cent and 2.5 per cent respectively. In 2019, tens of thousands of Hong Kongers held various rounds of anti-government and anti-China protests which initially began against the extradition bill but transformed into pro-democracy demonstrations. The protests led to the various incidents vandalism and in which it recorded a massive loss of public property and businesses. The former British colony returned to Chinese rule in 1997 amid promises it would be granted a high degree of autonomy and eventual universal suffrage. China's tightening grip on the city and Beijing's failure to live up to its promises have fed the unrest, in one of the biggest popular challenges to the ruling Communist Party since the return.

In recession- hit Hong Kong, government to give $1,200 cash to all permanent residents

Hong Kong slid into recession for the first time in a decade in the third quarter, weighed down by increasingly violent anti-government protests and the protracted <a href="https://www.wionews.com/world/beijing-ends-key-conclave-with-promise-to-protect-hong-kong-259098">US-China trade war</a>.

<a href="https://www.wionews.com/world/hong-kong-police-fire-tear-gas-in-kowloon-as-protesters-across-harbour-gatecrash-halloween-259091">Five months of protests</a> have battered the Chinese-ruled city's retail and tourism sector, and there is no sign of the demonstrations abating. Police tightened security on Thursday ahead of more potential clashes.

The city's economy shrank 3.2% in July-September from the preceding period, contracting for a second straight quarter and meeting the technical definition of a recession, according to preliminary government data on Thursday.

From a year earlier, gross domestic product (GDP) contracted 2.9%. The readings were the weakest for the Asian financial hub since the global financial crisis in 2008/2009.

The government also revised down second-quarter GDP data to show growth of 0.4% year-on-year, from a preliminary estimate of 0.6% and a later reading of 0.5%. Quarter-on-quarter was revised down to -0.5%, versus a preliminary forecast of -0.3% and a later reading of -0.4%.

Watch: Five months of Hong Kong protests take a toll on the economy

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"Domestic demand worsened significantly," the government said in a statement.

"As the weakening economic conditions dampened consumer sentiment and large-scale demonstrations cause severe disruptions to the retail, catering and other consumer-related sectors, private consumption expenditure recorded its first year-on-year decline in more than 10 years."

The government said that with no sign of protests abating, private consumption and investment sentiment would continue to be affected.

Some Hong Kong businesses have asked employees to take unpaid leave as tourists steer clear of sometimes violent running battles between protesters and police in key shopping areas and malls.

Capital Economics said in a research note that while GDP would probably continue to contract in the fourth quarter, the pace of contraction should ease barring a further escalation in the demonstrations.

"Any recovery will be constrained by weak business investment, however, as the city’s political crisis has done lasting damage to its reputation as a stable and autonomous financial hub," it said in a note to clients.

The protests and escalating violence have plunged the former British colony into its biggest political crisis in decades and unnerved many in the business and financial communities.

Protesters are angry at what they see as Beijing’s increasing interference in the Chinese-ruled city. China denies meddling and has accused foreign governments, including the United States and Britain, of stirring up trouble.

The city's leader Carrie Lam warned on Tuesday that full-year growth could contract.

Almost all growth engines in the Asian financial hub stalled over the summer as shops shut to avoid clashes between riot police and protesters, while the Sino-US trade war intensified. Hong Kong is one of the world's most popular tourism destinations and a bustling container port.

Retail sales fell the most on record year-on-year in August, while tourist arrivals dropped the most since Severe Acute Respiratory Syndrome (SARS) struck Hong Kong in 2003.

Last week, the government announced relief measures of HK$2 billion (£197 million) to support the economy, particularly in its transport, tourism and retail industries, and more is expected. It has also urged landlords to cut rents for struggling businesses.

But there is no guarantee Beijing will come to Hong Kong's rescue as it has done during previous downturns, at times relaxing mainland visitor restrictions to boost tourism.

"There is no liquidity bail-out for Hong Kong, ever. This is it. It's not coming back," said Andy Xie, a Shanghai-based independent economist formerly at Morgan Stanley.

Hong Kong slid into recession for the first time in a decade in the third quarter, weighed down by increasingly violent anti-government protests and the protracted US-China trade war.

Hong Kong slid into recession for the first time in a decade in the third quarter, weighed down by increasingly violent anti-government protests and the protracted US-China trade war. Five months of protests have battered the Chinese-ruled city's retail and tourism sector, and there is no sign of the demonstrations abating. Police tightened security on Thursday ahead of more potential clashes. The city's economy shrank 3.2% in July-September from the preceding period, contracting for a second straight quarter and meeting the technical definition of a recession, according to preliminary government data on Thursday. From a year earlier, gross domestic product (GDP) contracted 2.9%. The readings were the weakest for the Asian financial hub since the global financial crisis in 2008/2009. The government also revised down second-quarter GDP data to show growth of 0.4% year-on-year, from a preliminary estimate of 0.6% and a later reading of 0.5%. Quarter-on-quarter was revised down to -0.5%, versus a preliminary forecast of -0.3% and a later reading of -0.4%. Watch: Five months of Hong Kong protests take a toll on the economy × "Domestic demand worsened significantly," the government said in a statement. "As the weakening economic conditions dampened consumer sentiment and large-scale demonstrations cause severe disruptions to the retail, catering and other consumer-related sectors, private consumption expenditure recorded its first year-on-year decline in more than 10 years." The government said that with no sign of protests abating, private consumption and investment sentiment would continue to be affected. Some Hong Kong businesses have asked employees to take unpaid leave as tourists steer clear of sometimes violent running battles between protesters and police in key shopping areas and malls. Capital Economics said in a research note that while GDP would probably continue to contract in the fourth quarter, the pace of contraction should ease barring a further escalation in the demonstrations. "Any recovery will be constrained by weak business investment, however, as the city’s political crisis has done lasting damage to its reputation as a stable and autonomous financial hub," it said in a note to clients. The protests and escalating violence have plunged the former British colony into its biggest political crisis in decades and unnerved many in the business and financial communities. Protesters are angry at what they see as Beijing’s increasing interference in the Chinese-ruled city. China denies meddling and has accused foreign governments, including the United States and Britain, of stirring up trouble. The city's leader Carrie Lam warned on Tuesday that full-year growth could contract. Almost all growth engines in the Asian financial hub stalled over the summer as shops shut to avoid clashes between riot police and protesters, while the Sino-US trade war intensified. Hong Kong is one of the world's most popular tourism destinations and a bustling container port. Retail sales fell the most on record year-on-year in August, while tourist arrivals dropped the most since Severe Acute Respiratory Syndrome (SARS) struck Hong Kong in 2003. Last week, the government announced relief measures of HK$2 billion (£197 million) to support the economy, particularly in its transport, tourism and retail industries, and more is expected. It has also urged landlords to cut rents for struggling businesses. But there is no guarantee Beijing will come to Hong Kong's rescue as it has done during previous downturns, at times relaxing mainland visitor restrictions to boost tourism. "There is no liquidity bail-out for Hong Kong, ever. This is it. It's not coming back," said Andy Xie, a Shanghai-based independent economist formerly at Morgan Stanley.

Hong Kong falls into first recession in 10 years as protests, trade war weigh

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In recession- hit Hong Kong, government to give $1,200 cash to all permanent residents

Hong Kong falls into first recession in 10 years as protests, trade war weigh