Hong Kong’s economy is forecast to remain robust this year, expanding by 2.5%-3.5%, and the government expects to see a recovery in its fiscal stance after several years of budget shortfalls, Financial Secretary Paul Chan said in his annual budget presentation on Wednesday.
Chan framed the outlook within a shifting global landscape, noting that some major economies will continue to practise protectionist measures and that fragmentation of the global economy will persist. He added, however, that the ascent of the "Global South" and changes in international trade and investment patterns will create fresh markets and growth opportunities for the city.
At the same time, Chan emphasised Hong Kong’s intensified focus on technology and artificial intelligence as strategic priorities. He said the territory will strengthen efforts to integrate with mainland China’s longer-term national policy blueprint - the Five-Year Plan - as part of that push.
To help coordinate those efforts, Chan said the Chief Executive will head a cross-bureau, cross-departmental task force aimed at proactively aligning Hong Kong with the 15th Five-Year Plan. He also said that, for the first time, Hong Kong will formulate its own five-year plan as part of this alignment.
The measures form part of the government’s response to a range of pressures, including ongoing trade tensions and signs of economic fragility in China. Chan positioned the shift toward technology and AI as a component of Hong Kong’s strategy to unlock new areas of growth and to better integrate with evolving regional and global trade and investment networks.
While the financial secretary portrayed a cautiously optimistic economic picture for the coming year, his remarks underscored persistent external risks and the city’s intent to pursue policy alignment with mainland planning and to prioritise the development of technology and AI capabilities.