HONG KONG: Hong Kong’s economy will remain buoyant this year, growing by 2.5 per cent to 3.5 per cent, with an expected return to a more robust fiscal position following several years of budget deficits, Financial Secretary Paul Chan said in his annual budget speech on Wednesday (Feb 25).
“In the medium term, protectionism will persist in some major economies, while fragmentation of the global economy will continue. Nevertheless, the rise of the Global South and the reshaping of the global trade and investment landscape will unlock new markets and new growth areas,” Chan said.
The financial hub is also redoubling its focus on the technology and AI sector to bolster integration with mainland China’s longer-term national policy blueprint, or five-year plan, Chan said, amid challenges including trade tension and Chinese economic fragility. Hong Kong is a special administrative region of China.
The government has earmarked at least HK$20 billion (US$2.56 billion) to invest in two development zones, including the San Tin Technopole and Hetao Hong Kong Park – on the border with China – that will focus on technological industries and research and development to generate new economic drivers.
These are both part of a broader mega project known as the Northern Metropolis, spanning 30,000ha, aiming to bolster Hong Kong’s technological collaboration and linkages with China – as Beijing prepares to announce in March its latest five-year-plan setting out national policy priorities and targets between 2026 and 2030.
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