Paul Chan cautiously optimistic about HK's economic performance in second half

Financial Secretary Paul Chan Mo-po is cautiously optimistic about Hong Kong's economic performance in the second half of the year, noting that the impact of the Middle East situation driving up oil prices is relatively small compared to other economies.

Based on preliminary data, export performance in the second quarter was solid, Chan said in an interview with RTHK.

The retail and catering sectors are showing steady improvement, and the asset market is stable, he said.

Coupled with the mega-event economy, he believes consumer spending power can be sustained.

He added that he believes the property market is also showing steady improvement and the government has sufficient land supply and can accelerate its rollout if necessary.

Chan is confident that the operating account for the current financial year will record a surplus. 

However, because the development of the Northern Metropolis needs to be accelerated, it is estimated that the capital account will still record a deficit.

He emphasized that the government's borrowing ratio remains very low, with outstanding debt equivalent to about 14 percent of the gross domestic product (GDP)—a very stable and safe level. 

He reiterated that the proceeds from bond issuance are investments for the future and will absolutely not be used for recurrent expenditure, ensuring that future public finances will remain highly robust.

Chan also stated that there are three engines driving Hong Kong's future economic development worth noting, which include trade, finance, and the innovation and technology (I&T) industries.

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