Hong Kong may take ‘year or two’ extra to return to budget surplus amid sluggish economy, reduced land sales: Paul Chan
- Finance chief says surplus may take longer than original estimate of 2025-26 financial year
- Secretary also offers assurances that efforts to secure new land will continue despite developers’ lack of appetite
Hong Kong may take “a year or two” longer than expected to return to a budget surplus, according to the finance chief, who attributed the delay to a sluggish city economy and reduced land sales limiting government income.
Looking ahead, Chan said the presidential election in the United States could create headwinds for Hong Kong’s economy, but the expected end of the interest rate hike cycle and possible better growth in mainland China might provide a boost at home.
The secretary was speaking at a televised consultation session before next month’s budget speech, where many attendees said they were concerned about the deficit.
One audience member, who identified himself only as Kwan, said he was worried the city would be forced to rely on borrowing to sustain public spending in the long run.
But Chan said authorities had taken a “fiscal consolidation” approach to cut spending and that a return to a surplus was on the horizon, but it would take “a year or two” longer than earlier expected.
