Photo taken on July 16, 2020 shows the Avenue of Stars in Tsim Sha Tsui of south China's Hong Kong. Hong Kong witnessed a resurgence of COVID-19 cases over the past weeks, prompting the government to step up preventive and control efforts again, including mandatory mask-wearing on public transport and closures of some entertainment venues. (Xinhua/Li Gang)

The economy of Hong Kong Special Administrative Region (HKSAR) might need a longer time than expected to recover, the HKSAR's financial secretary said Sunday, citing the abrupt worsening of political, economic and trade ties between China and the US, and an intensified escalation of geopolitical tensions that add to an uncertain global economic outlook.

These factors, in addition to the region's recent reccurence of COVID-9 outbreak, will subject Hong Kong's economy to a longer recover time, financial secretary Paul Chan Mo-po wrote in a blog post.

The city is currently facing a new round of attacks by the virus, with a high number of newly confirmed cases. This will impact on the social activity of residents and slow the economy, Chan wrote, noting that a series of coronavirus containment measures have been enforced by the local government to stop the spread. However, the measures create inconveniences in daily life and travel as well as subjecting stores and businesses to more pressure, but tough choices must be made between a short-term struggle and a long-term pain.

The city logged another daily record of 133 new infections Saturday, bringing its total number of confirmed cases to 2,506.

The city was estimated to have seen a tough second quarter, although its economic decline seems to have eased. Local retail sales fell 33.9 percent in May, but they improved slightly compared to plunging 37.5 percent in April and 44 percent in March. 

The city's sales in June have yet to be announced, but a continued improvement is expected, according to Chan.

In relation to the city's exports, the external situation remains difficult as most major economies are mired in a deep recession. A swift rebound in the Chinese mainland economy, nevertheless, provides support for the city, partially offsetting a sudden drop in global demand, he went on to say.

Local exports of goods were down 9.1 percent year-on-year in the first quarter, but the decline eased to 4.8 percent in April and May. What's more, a freeze has continued to hit the tourism sector, while local services exports and investment activities continue to be sluggish due to a hazy outlook.

Despite this, the city's course of development indicates that in every crisis hides a new opportunity, and every difficulty holds the keys to future development, the financial secretary commented, calling for efforts to push for the application of innovative technologies for the local economy's future reform.

Global Times