People's Republic of China-Hong Kong Special Administrative Region: Staff Concluding Statement of the 2026 Article IV Mission People's Republic of China-Hong Kong Special Administrative Region: Staff Concluding Statement of the 2026 Article IV Mission

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People's Republic of China-Hong Kong Special Administrative Region: Staff Concluding Statement of the 2026 Article IV Mission

May 15, 2026-Hong Kong SAR's economy has continued to recover, with growth in 2025 stronger than expected, supported by robust technology-related exports, improving private demand, and a rebound in financial market activity. The territory has also reinforced its position as a global financial center and super-connector between the Chinese mainland and the rest of the world.

However, the recovery remains ongoing and economic activity is still below its pre-pandemic trend, while headwinds-including weak private investment and declining labor force participation, both of which remain below pre-pandemic levels-persist. Growth is expected to moderate in the near term mainly reflecting weaker external demand and tighter financial conditions stemming from the war in the Middle East.[1] Risks are tilted to the downside, including from a potential intensification of conflicts and escalating geopolitical tensions. Given the economic slack, an expansionary fiscal stance in 2026 is appropriate.

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Source: imf.org


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