Hong Kong’s economy is expected to grow by up to 3.5% due to the return of a budget surplus, after three years of deficit, the Finance Secretary of the semi-autonomous Chinese region announced this Wednesday, 25th.
Hong Kong’s economy was “on the rise” in 2025, with foreign trade remaining strong, private consumption recovering and fixed investment accelerating, said Paul Chan during the presentation of the 2026 budget, cited by the Hong Kong Free Press (HKFP) news portal.
The person responsible for finance predicted a growth of 2.5% to 3.5% in the economy of the special administrative region in the current fiscal year (April 1, 2025 to March 31, 2026).
“In the medium term, protectionism will persist in some major economies, while the fragmentation of the global economy will continue. However, the rise of the Global South and the reshaping of the global trade and investment landscape will unlock new markets and new areas of growth”, assessed the secretary, also according to HKFP.
Paul Chan also announced that the surplus in fiscal year 2025-26 ends a three-year run of budget deficits. Driven by demand for electronics, Hong Kong’s goods exports grew 12%, with increases to be seen in exports to mainland China and Association of Southeast Asian Nations (ASEAN) countries, the portal wrote.
Also according to the HKFP, the city in southern China recorded a deficit of 80.3 billion Hong Kong dollars (8.69 billion euros) in the 2024-25 fiscal year, 101.6 billion Hong Kong dollars (11 billion euros) in 2023-24 and 122 billion (13.2 billion euros) in 2022-23.
The stock market presented an “excellent performance”, according to the person in charge. The Hang Seng index rose 28% over the year, while initial public offerings (IPO) raised 280 billion Hong Kong dollars (30.3 billion euros), ranking first globally.
When presenting the budget, the Finance Secretary also stated that the Government is committed to attracting more companies to set up shop in the region.
Policy instruments, including land concession agreements, financial subsidies and tax incentives, will be implemented to promote industries and investment, he announced, according to public broadcaster RTHK [Radio Television Hong Kong].
The Hong Kong finance chief also highlighted the importance of increasing support for mainland Chinese companies that are expanding into international markets.
Another area of focus, said Paul Chan, involves further promoting Hong Kong as an international convention and exhibition center, with 100 million Hong Kong dollars (10.8 million euros) being set aside to attract large-scale international exhibitions with new elements.
The broadcaster also reported that Paul Chan announced that he will chair the new “Committee on AI+ and Industry Development Strategy” as part of work to ensure that all sectors of society understand and use artificial intelligence.
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