‘Very High Chance’ Hong Kong Will End Year In Recession

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Hong Kong is set to end the year in the midst of a full-blown recession, the city’s finance chief warned Thursday, as spiraling interest rates join strict COVID-19 controls in hammering the economy.

“There is a very high chance for Hong Kong to record a negative GDP growth for this year,” Financial Secretary Paul Chan told reporters, adding that interest rates were being raised “at a pace that was never seen in the past three decades”.

The Chinese city’s monetary policy moves with the Federal Reserve because its currency, one of the cornerstones of its business hub reputation, is pegged to the US dollar.

The Fed’s hawkish rate hikes, aimed at curbing soaring inflation, come at a…

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