IMF Recognizes the Steadfast Resilience of Hong Kong's Financial System
The international body underscores the strength of Hong Kong's institutional frameworks and the effectiveness of its economic policies amid ongoing global challenges.
Hong Kong's financial system continues to exhibit remarkable resilience, bolstered by robust institutional frameworks, substantial policy buffers, and the effective operation of its linked exchange rate system, according to a statement released by an International Monetary Fund (IMF) staff team on Friday.
This acknowledgment came following the IMF's 2024 Article IV Consultation with the Hong Kong Special Administrative Region (HKSAR).
The IMF's conclusive statement reaffirmed Hong Kong's esteemed status as an international financial hub.
Despite encountering multiple headwinds, Hong Kong's economy is on a trajectory of gradual recovery.
Projections by the IMF indicate that the real gross domestic product of Hong Kong is expected to grow by 2.7 percent in both 2024 and 2025, suggesting sustained economic progress.
To facilitate this recovery, the authorities' strategy for a more gradual fiscal consolidation path has been deemed appropriate.
This approach is expected to support economic recovery, with future fiscal deficits projected to narrow.
This reduction is anticipated to be driven by new revenue measures, efforts to control expenditure, and the phased withdrawal of pandemic-related support.
Paul Chan, Financial Secretary of the HKSAR government, outlined plans to achieve fiscal balance in the upcoming years by identifying new revenue streams and managing the growth of expenditures, with a pronounced focus on the latter.
Further reaffirming the financial stability of the region, Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, stated that the linked exchange rate system remains the most suitable financial arrangement for the territory.
This system supports Hong Kong's highly open economy and its substantial, globally interconnected financial services sector.
'We will continue to stay vigilant and safeguard financial stability while enhancing Hong Kong's status as an international financial center,' Yue asserted, highlighting continued commitment to maintaining the region's economic robustness.
This acknowledgment came following the IMF's 2024 Article IV Consultation with the Hong Kong Special Administrative Region (HKSAR).
The IMF's conclusive statement reaffirmed Hong Kong's esteemed status as an international financial hub.
Despite encountering multiple headwinds, Hong Kong's economy is on a trajectory of gradual recovery.
Projections by the IMF indicate that the real gross domestic product of Hong Kong is expected to grow by 2.7 percent in both 2024 and 2025, suggesting sustained economic progress.
To facilitate this recovery, the authorities' strategy for a more gradual fiscal consolidation path has been deemed appropriate.
This approach is expected to support economic recovery, with future fiscal deficits projected to narrow.
This reduction is anticipated to be driven by new revenue measures, efforts to control expenditure, and the phased withdrawal of pandemic-related support.
Paul Chan, Financial Secretary of the HKSAR government, outlined plans to achieve fiscal balance in the upcoming years by identifying new revenue streams and managing the growth of expenditures, with a pronounced focus on the latter.
Further reaffirming the financial stability of the region, Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, stated that the linked exchange rate system remains the most suitable financial arrangement for the territory.
This system supports Hong Kong's highly open economy and its substantial, globally interconnected financial services sector.
'We will continue to stay vigilant and safeguard financial stability while enhancing Hong Kong's status as an international financial center,' Yue asserted, highlighting continued commitment to maintaining the region's economic robustness.
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