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HONG KONG (Reuters) – Hong Kong’s deficit for this fiscal year is expected to be slightly less than HK$100 billion (US$13 billion), the city’s finance minister said on Saturday.
The government is “focusing on cost-saving measures” to deal with the deficit, Paul Chan told citizens on a program on public broadcaster RTHK where he was gathering public opinion ahead of the upcoming budget.
“Although we need to move forward with public works projects… we must put progress at their own pace,” he said.
The economic growth rate in the first three quarters of 2024 was not as strong as expected due to high interest rates and external pressures, Chan said.
Hong Kong’s economy is expected to grow 2.5% in 2024, he wrote in a blog post in December. That followed a third-quarter growth rate of 1.8%, which fell below expectations.
The estimated deficit for the year ending in March is about double the previous net of HK$48.1 billion in the budget presented in February.
Chan said this shortfall was mainly due to a sharp drop in income from land sales. Boosting the economy during the financial crisis will be Hong Kong’s “greatest challenge”.
($1 = 7.7779 Hong Kong dollars)
