“Given the significant increases in government spending over the past few years and the pressures on future public finances, it is inevitable that spending will need to be consolidated and managed more carefully,” he said, launching a public consultation on the policy. I mentioned it when I did it. Budget for 2024-25.
“The geopolitical situation will remain complex and volatile next year, which will constrain Hong Kong’s economic growth. Income related to asset markets will be difficult to recover quickly and will remain in the red next year. The possibility cannot be excluded.”
In a separate statement, Chan said the Feb. 28 budget will pursue development that promotes stability and allocates resources “appropriately” to foster economic growth and deliver “tangible benefits” to residents. Ta.
He said in a blog post that the government will continue to freeze civil service numbers this year and require all departments and departments to cut spending by 1% in 2024-25 and next financial year.
Mr Chan added that authorities will strive to increase government revenue, and key efforts include deepening economic ties with the Middle East and ASEAN countries, as well as attracting innovation and technology companies to the city. .
“We need to make positive plans for Hong Kong’s long-term and sustainable development, grow our economic pie together, and make Hong Kong better,” he said.
Hong Kong next year faces ‘high uncertainty’, Treasury secretary warns
Hong Kong next year faces ‘high uncertainty’, Treasury secretary warns
Since 2019, Hong Kong has recorded a deficit every year except for 2021-22. Government spending increased by 40% from 2017-18 to 2022-23, excluding funds spent on stabilizing the economy and dealing with the pandemic. Over the same period, fiscal reserves fell from HK$1.1 trillion to HK$834 billion.
Government revenues, particularly stamp duty from property purchases, stock transactions and land premiums, also fell compared to estimates produced earlier this year, with the result believed to be due to a weaker asset market.
Yue predicted that the U.S. economy next year will be eased by prudent economic management, and said mainland China is showing signs of recovery.
He predicted that the U.S. economy would experience a “soft landing” next year, in which interest rates are raised by the Federal Reserve just enough to control inflation without causing a recession.
“A soft landing could give the Fed room to consider holding interest rates unchanged or lowering them,” he said on Sunday’s radio show.
Yue added that he does not expect any rate cuts to occur before mid-2024.
He said the mainland economy has reached a bottoming stage, with industrial production, retail and consumer sentiment recovering slightly in the past two months, and accommodative monetary policy gradually showing results.
Hong Kong “promotes deepening ties with the Middle East and China” to attract new capital
Hong Kong “promotes deepening ties with the Middle East and China” to attract new capital
Yue also refuted claims spread on mainland social media that Hong Kong has become a “ruined international financial center”.
“Our banking system remains the largest among international banking centers in Asia, and our stock market is also huge in terms of market capitalization and trading volume, although it is affected by business cycles,” Yue said. .
Hong Kong has been the worst performer in the initial public offering (IPO) market this year, as a result of interest rate hikes, which have affected the global economy and hit global IPOs and bond issuance. Mr. Yue said.
He added that despite the decline in lending, there is no evidence of increased capital outflows as exchange rates have remained stable and customer deposits have increased. He added that there is also no sign that outflows of banks’ foreign exchange reserves will increase.
Yue also promised to set up a strict regulatory mechanism for virtual assets in line with the framework set by the Financial Stability Forum. Earlier this year, hundreds of people allegedly lost more than HK$1.6 billion on cryptocurrency exchange platforms Hounax and JPEX.
But he stressed the need for jurisdictions to work together to standardize frameworks and close loopholes.
Yue added that the HKMA’s priorities for next year include promoting the internationalization of the renminbi and mBridge, a multi-central bank digital currency project.