The unemployment data for Hong Kong for the third quarter is set to be released tomorrow. According to a DBS Bank research report, the jobless rate is likely to have remained at 6.1 percent in the third quarter on a gradually reopening local economy.
Rules for social distancing have been partially relaxed, with in-restaurant dinning smaller than a group of 4 is resumed. Therefore, price cut is less aggressive on entering September, with contraction in CPI should have narrowed to 0.2 percent year-on-year from 0.4 percent.
“Yet, jobless rate and deflation could not ease back unless the border could be re-opened as tourist spending accounts for 30 percent of HK’s total retail sales”, added DBS Bank.