HONG KONG (Reuters) – Hong Kong’s deficit this fiscal 12 months is anticipated to be just below 100 billion Hong Kong {dollars} ($13 billion), the town’s chief monetary officer mentioned on Saturday.
The federal government is “specializing in cost-saving measures” to sort out the deficit, Paul Chan informed residents throughout a broadcast on public broadcaster RTHK the place he was gathering public feedback forward of the following funds.
“Although we have to transfer ahead with public works initiatives…we have to prioritize developments based mostly on their urgency,” he mentioned.
The financial system’s progress fee within the first three quarters of 2024 was not as sturdy as anticipated because of excessive rates of interest and exterior challenges, Chan mentioned.
Hong Kong’s financial system is anticipated to develop by 2.5% in 2024, he wrote in a weblog publish in December. This follows a progress fee of 1.8% within the third quarter, decrease than expectations.
The estimated deficit for the 12 months ending in March is about double the earlier forecast of HK$48.1 billion within the funds introduced in February.
Chan attributed the deficit primarily to a pointy drop in income from land gross sales. Reviving the financial system amid a funds deficit can be Hong Kong’s “greatest problem”, he mentioned.
($1 = 7.7779 Hong Kong {dollars})
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