HONG KONG, Jan. 10 (Xinhua) -- Hong Kong's financial system remains resilient, supported by robust institutional frameworks, ample policy buffers, and smooth functioning of the linked exchange rate system, an International Monetary Fund (IMF) staff team said in a statement released on Friday.
The staff team reaffirmed Hong Kong's status as an international financial center in its concluding statement for the 2024 Article IV Consultation with the Hong Kong Special Administrative Region (HKSAR).
IMF staff noted that Hong Kong's economy is on a path of gradual recovery, albeit facing multiple headwinds. Hong Kong's real gross domestic product is estimated to grow by 2.7 percent in both 2024 and 2025, according to the statement.
The authorities' plan for a more gradual fiscal consolidation path is appropriate as it would help sustain economic recovery, said IMF staff. Going forward, the fiscal deficit is projected to narrow further, supported by new revenue measures, efforts to contain expenditure, and the winding down of pandemic-related support.
To restore fiscal balance in the next few years, Financial Secretary of the HKSAR government Paul Chan said Hong Kong will identify new revenue sources while managing expenditure growth, with a focus on the latter.
Chief Executive of the Hong Kong Monetary Authority Eddie Yue said that the linked exchange rate system remains the most suitable arrangement for Hong Kong given its highly open economy as well as its large and globally connected financial services industry.
"We will continue to stay vigilant and safeguard financial stability while enhancing Hong Kong's status as an international financial center," said Yue.
