Speaking on a Commercial Radio programme on Sunday, Chan noted the economy performed robustly in the first half of the year, driven largely by strong export activity.
Both external demand and domestic consumption remained resilient, he said.
He cited encouraging indicators, including 14 consecutive months of retail sales growth and a modest uptick in the catering sector.
On the financial front, Chan observed that the property and stock markets are showing signs of stabilisation with a positive bias, and the labour market continues to hold up favourably.
Given these underlying strengths, he said he expects the economy to maintain steady momentum throughout the remainder of the year.
Despite this recent performance, Chan acknowledged that external headwinds — particularly US trade policies and interest rate movements — pose notable risks to Hong Kong.
Still, he does not foresee dramatic shifts in the near term.
“As for interest rate trends, the market currently expects no major changes for the rest of the year — maybe one more rate hike of 0.25 percent, which has already been priced in,” he said.
“The US is also facing the midterm elections soon. We believe that for the remainder of this year, the impact on us will be present but the risks are manageable.”
On trade, Chan highlighted the agility of both mainland and Hong Kong companies in adapting to changing conditions over the past few years.
He pointed out that while the US remains an important trading partner, its relative significance has diminished.
“If you look at our export markets, the US is now ranked fourth in terms of volume. It’s still an important market, of course, but compared with Southeast Asia and other regions, its relative scale is smaller,” he said.
“The psychological effect is greater, and that can affect financial markets, leading to greater market fluctuations. As long as we manage the risks properly, we’ll be fine.”
He also touched on geopolitical uncertainties, including the conflict in the Middle East, which already affected energy supplies in the first half of the year.
Disruptions to supply chains and potential inflationary pressures are concerns, but Chan maintained that these risks remain containable.
Ultimately, Chan stressed that in the face of external uncertainties, it is all the more crucial for Hong Kong to stay resolute and accelerate its efforts to reinforce stability and growth.
