Resources allocation a focal point, says Chan

Hong Kong Financial Secretary Paul Chan Mo-po said that with the fifth wave of the pandemic bound to impact to the economy, the allocation of resources to provide appropriate support is a focal point that will require continuous, dynamic analysis and evaluation.

His comments came when several sectors, including the food and beverage industry, are demanding another round of relief amid the lockdown.

The government has yet to give economic forecasts for 2022, which is expected during Chan's annual budget speech in February, but he said in his blog post on Sunday that he will also take into account the global pandemic, supply-chain bottlenecks and changes in monetary policies by western central banks in making his predictions.

The blog also warned of the rising prices of fuel and commodities, saying that all these changes may add uncertainty to the outlook of the Hong Kong economy.

Economists at Morgan Stanley and Bloomberg Economics have already cut their economic growth forecasts for Hong Kong, citing the delayed reopening of borders with China.

Before the Omicron variant clouded the city's outlook, Hong Kong's retail sales climbed for 10 consecutive months in November as consumption sentiment remained positive amid an economic recovery and from the government's digital retail voucher scheme to boost spending.

Retail sales in November rose 7.1 percent from a year earlier to HK$30.7 billion, government data showed early this month. That compares with a revised 12.1 percent increase in October.