Exclusive | ‘High uncertainty’ ahead for Hong Kong in coming year, finance chief warns, but authorities will remain ‘alert and vigilant’ to market situation
- Paul Chan says government cannot change risks arising from external environment but will be firing on all cylinders to get economy going
- Financial secretary also takes aim at global ratings agency Moody’s for downgrading its outlook on Hong Kong
Hong Kong will double down on fixing the economy despite facing high external uncertainty in the year ahead amid continuing geopolitical tensions and high interest rates, the finance chief has said, while also expressing optimism that a softening property market will not trigger a crisis of confidence.
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External factors risk for Hong Kong ahead in coming year, finance chief warns
He also lambasted ratings agency Moody’s for downgrading its outlook on Hong Kong this week, saying it was doing its assessment through a rear-view mirror as the tremendous pressure on mainland China’s real estate market and the debts of some local governments were already under control.
“2024 will be a year of high uncertainty,” Chan said. “The main challenge to Hong Kong is the external environment. The higher-for-longer interest rates, the geopolitical tensions, and also the elections, say for example, in the United States”.
He added: “There’s not much we can do, except that we continue to be alert and vigilant to monitor the market situations, to identify risk signals if any … [We] must concentrate on doing our own work in terms of growing the economy.”
Hong Kong’s base interest rate remains at a 16-year high of 5.75 per cent, in lockstep with the US Federal Reserve’s drive to tame inflation.
