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Hong Kong’s Chan Warns City Could Face Deepest Slump on Record

A pedestrian crosses near the Liaison Office of the Central People's Government in the Sai Ying Pun district of Hong Kong.

A pedestrian crosses near the Liaison Office of the Central People's Government in the Sai Ying Pun district of Hong Kong.

Photographer: Paul Yeung/Bloomberg

Hong Kong Financial Secretary Paul Chan warned the city could be hit by its worst economic slump on record even as authorities prepare to ease some lockdown measures amid signs the coronavirus outbreak has been contained.

Reiterating a forecast for a contraction of 4% to 7% this year, Chan said in a blog post on Sunday that the low-end of that estimate would be the deepest drop since records began in the 1960s. A report on Hong Kong’s economy released on Monday is estimated to show a 6.4% contraction in the first quarter from the end of 2019, according to a Bloomberg survey.