Pressing need to inject more resources to speed up Hong Kong’s economic revival, finance chief says as budget consultation launched

Hong Kong’s financial secretary has said there is a pressing need to inject more resources to speed up economic recovery in the coming budget and has warned of possible unexpected volatility despite a more optimistic outlook.

Paul Chan Mo-po also said a main goal of his 2023-24 budget, to be delivered on February 22 next year, was to have a forward-looking vision to strengthen economic revival while addressing people’s concerns under the limited resources available.

In kicking off the government’s budget consultation exercise on Sunday, Chan said: “Looking to the year ahead, the external environment will still be complex and challenging. But as our connections and exchanges with mainland China and the rest of the world gradually return to normal, Hong Kong’s economy is likely to gather steam again.

“When preparing for the 2023-24 budget, we will, on the one hand, continue to strive for stabilising and stimulating the economy as well as easing the pressure on members of the public and businesses; and on the other, plan for Hong Kong’s long-term development and allocate resources appropriately.”

Chan also said in his weekly blog post that the backdrop against which he had to work out the budget was more difficult, citing the lingering Covid-19 pandemic and geopolitical tensions that had led to disruptions to the global supply chain, high inflation, tightened monetary policies by major central banks, and interest rate increases.

He noted Hong Kong’s economy was expected to contract by 3.2 per cent in 2022, with a deficit of more than HK$100 billion forecast for 2022-23.