Finance chief expects Hong Kong economy to grow 2.5 to 3.5 pct in 2024

HONG KONG, Feb. 28 (Xinhua) -- The Hong Kong economy will expand further this year, with growth of 2.5 to 3.5 percent in real terms for the year as a whole, Financial Secretary of China's Hong Kong Special Administrative Region (HKSAR) government Paul Chan said on Wednesday.

Domestic cost pressures are expected to increase alongside the economic recovery. External price pressures, however, should ease further, Chan made the remarks while delivering the 2024-25 budget at the HKSAR's Legislative Council.

He forecast an underlying inflation rate and headline inflation rate of 1.7 percent and 2.4 percent, respectively, this year.

Visitor arrivals are expected to increase further, driving growth in exports of travel and other related services, while rising incomes among the general public will continue to support private consumption, he said, adding that successive government measures will help lift consumption sentiment as well. Fixed asset investment should also increase alongside continuing economic growth.

He forecast that the Hong Kong economy will grow by an average of 3.2 percent a year in real terms from 2025 to 2028. The underlying inflation rate is forecast to average 2.5 percent a year.

"In the medium term, the Hong Kong economy will see sustained and solid development," Chan said, adding that global demand should be able to revive gradually in tandem with the anticipated progressive declines in interest rates in the United States and the eurozone in the coming few years.

"More importantly, our country's focus on promoting high-quality development will provide Hong Kong with ample room to grow," he said.