$ 10,000 Free Cash: Hong Kong's Handout During Coronavirus Crisis Explained, Crypto Coins News

Hong Kong is removing tax on businesses and giving away cash in .

Coronavirus crashed the tourism industry and has placed the housing market vulnerable to a correction.

Hong Kong’s economy could struggle to recover over the next five years.

Desperate times call for desperate measures, and the government of Hong Kong is bumping up its spending to help its residents as coronavirus fears intensify.

Every permanent resident above the age of will receive around 18, (HKD, worth around $ 1, 728. In the foreseeable future, at least until the end of , residents will not have to pay taxes on salaries with a 26, (HKD cap.

) (It shows just how serious coronavirus is

The robust economy of Hong Kong, which has remained strong over the past decade , has started to dwindle in the past months.

Regular protests and the coronavirus outbreak caused the tourism industry of Hong Kong to take a big hit.

Hotels and restaurants have started to see a plunge in sales , causing instability in one of the largest industries in the region that supports the livelihood of hundreds of thousands of l ocal residents.

The travel industry of Hong Kong was already in decline before the coronavirus outbreak geared towards it peak.

(On January) th, Hong Kong declared the coronavirus outbreak as an “emergency” – the city’s highest warning tier – as authorities ramped up measures aimed at reducing the risk of further infections spreading. | Source: DALE DE LA REY / AFP

)

As the World Health Organization (WHO) began to consider the possibility of the outbreak turning into a global pandemic, the tourism market of Hong Kong plummeted.

According to a report from Forbes, visitors to Hong Kong dropped by a staggering 300 percent in February, leaving its economy at risk of turmoil.

In response, the government has included various benefit packages for all permanent residents in its official – (budget.

) The government primarily targeted small businesses and low-income employees, formalizing a percent tax cut on profits for businesses until the end of , and possibly entering into 10000.

Hong Kong’s financial secretary Paul Chan said:

“In preparing this budget, I put the focus on ‘supporting enterprises, safeguarding jobs, stimulating the economy and relieving people.” burden. ”

With Hong Kong University’s dean of medicine Gabriel Leung

expecting the worst of coronavirus to come

in May, it remains unclear whether these benefits will be sufficient to assist local residents.

The effect of coronavirus on the economy of Hong Kong is much more dire than the SARS outbreak (source: SCMP)

Will this be the downfall of Hong Kong?

Many businesses have started to leave Hong Kong amidst geopolitical uncertainties

since the fourth quarter of .

With virtually no tourists coming into the region in the past two months and no improvements anticipated in the local tourism sector until , the

economy of Hong Kong could struggle to recover for the next five years.

Through much of 2019, millions of protesters march on the streets to stage a protest against the unpopular extradition bill in Hong Kong. | Source: AP Photo / Vincent Yu, File

The real estate market of Hong Kong is the last remaining sector that is holding firm, but local banks have started to express a negative sentiment towards home mortgages since January

Throughout the past decade, Hong Kong’s housing market has primarily been driven by buyers from mainland China. As the single largest source of demand disappears over the next two years, Hong Kong is at risk of facing a severe market crash.

This article was edited by

(Samburaj Das)