Hong Kong sees 2.5%-3.5% GDP in 2026, Eyes Fiscal Deficit Reduction

Hong Kong's Financial Secretary Paul Chan announced in his annual budget speech on Wednesday that the city expects its economy to grow between 2.5% and 3.5% in 2026, as the government aims to return to stronger fiscal health following several years of budget deficits. The optimistic projection comes after Hong Kong has navigated various economic challenges, including the global pandemic and shifting geopolitical dynamics that have affected its status as a financial hub. Chan emphasized that the growth targets are achievable through strategic economic policies and continued integration with mainland China's development plans. The government's fiscal strategy focuses on reducing deficits while maintaining essential public services and investing in future economic drivers such as technology and innovation sectors.