Hong Kong Revises Fiscal Deficit Forecast

Hong Kong's finance chief, Paul Chan, has updated the fiscal deficit forecast for this year to just below HK$100 billion (approximately US$13 billion), nearly doubling the previous estimate of HK$48.1 billion. The deficit is attributed to a significant drop in land sale revenues and is compounded by lower-than-expected economic growth, projected at 2.5% for 2024. Chan emphasized the government's focus on cost-saving measures and prioritizing public works projects according to their urgency. He also noted that the government plans to review resource allocation and may implement further budget cuts. Despite the challenges, Chan expressed determination to manage recurring expenses effectively and boost the economy amid the fiscal shortfall. The government is also considering the use of bond issuance and public-private partnerships to finance infrastructure projects.