Hong Kong Financial Secretary Paul Chan Mo-po attends the "Voices from the Hall - Budget Consultation" forum organized by Radio 1 of Radio Television Hong Kong, Jan 18, 2020. (PHOTO / HKSAR GOVERNMENT)

HONG KONG - Hong Kong must not give up on its youth and should invest in future generations, the city's Financial Secretary Paul Chan Mo-po said at a forum on Saturday, Radio Television Hong Kong reported.

Hong Kong needs to increase the supply of subsidized housing to provide affordable homes to more people, one of the city’s most pressing issues, said Chan

The city faces declining income and a growing deficit as it tries to deal with ongoing social issues, Chan said. Hong Kong has endured seven months of violent protests stemming from the extradition bill incident, taking a toll on the retail sector and tourism and dragging the economy into its first recession in a decade.

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The government has pumped more than HK$35 billion, about 1.2% of 2018 gross domestic product, into the economy since the protests started, Chan said. Hong Kong needs to increase the supply of subsidized housing to provide affordable homes to more people, one of the city’s most pressing issues, RTHK cited Chan as saying.

Chief Executive Carrie Lam Cheng Yuet-ngor has announced a welfare package of HK$10 billion, focusing on the city’s more vulnerable people, but Chan suggested on Saturday that the government might have to cut back on other relief measures such as tax rebates because of the general increase in spending.

Economists forecast an annual contraction of 1.3% for 2019 mainly due to the protests. The unemployment rate rose to 3.2% in November, with joblessness in the retail and tourism-related sectors rising the most in three years to 5.2% from the September-to-November period.

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