The International Monetary Fund (IMF) commended Hong Kong’s resilient economic growth in a statement published today outlining its assessment of the city’s economic and financial situation.
The IMF conducts annual health checks on economies known as Article IV Missions. This year’s mission in Hong Kong noted in a concluding statement that the city’s economy has continued to recover, supported by robust technology-related exports, improving private demand and a rebound in financial market activity.
It also reaffirmed Hong Kong’s role as an international financial centre and “super connector”.
The mission observed that policy initiatives such as the Northern Metropolis are conducive to fostering innovation and high-value services, while supporting economic growth and structural transformation.
Moreover, the mission considers Hong Kong’s fiscal stance appropriate in light of current economic conditions, while supporting a focus on achieving stronger medium-term consolidation to rebuild fiscal reserves and address rising spending pressures.
The mission states that financial sector risks are manageable, supported by strong buffers and robust regulatory oversight. It also recognises that Hong Kong is well placed to build further on its digital and sustainable finance agenda.
Financial Secretary Paul Chan welcomed the mission’s assessment of Hong Kong’s ongoing economic recovery and its support for the Government’s efforts to drive economic growth and achieve economic diversification.
“The Hong Kong economy expanded robustly in the first quarter of 2026,” he said. “Looking ahead, Hong Kong’s economic growth outlook is positive, underpinned by strong global demand for AI-related electronics, sustained growth in visitor arrivals and robust cross-boundary financial activities.”
Mr Chan added that a favourable business environment and gradually improving consumer sentiment will continue to support domestic demand.
“We will closely monitor the development of the situation in the Middle East, dynamically assess the economic situation, and react flexibly,” he said.
The Financial Secretary also mentioned that the Government takes note of the mission’s views on Hong Kong’s commercial real estate (CRE) sector.
He stressed that the global CRE market has faced challenges in the post-pandemic era, amid changing office work and consumption patterns.
He outlined that the Government has in recent years introduced a series of market-stabilising policy measures, adding that Hong Kong’s CRE market has indeed stabilised, with transaction and leasing volumes rising significantly, and prices and rents becoming steady.
Regarding the pace of fiscal consolidation, Mr Chan said the Government’s programme is progressing as planned.
He remarked that, according to the Medium Range Forecast set out in the Budget, the Operating Account will record surpluses for each of the next five years, with surpluses increasing year by year. This, he said, indicated the effectiveness of the Government’s measures to increase revenue and control expenditure.
Nevertheless, Mr Chan said, the Capital Account will still record deficits during this period, resulting in a deficit – before issuance and repayment of bonds – in the Consolidated Account, mainly due to the Government’s infrastructure spending in accelerating the development of the Northern Metropolis and driving Hong Kong’s high-quality development.
“These investments for the future will bring broader economic benefits and tax revenues to Hong Kong,” he emphasised. “We will make good use of market forces to finance these infrastructure projects.”
Furthermore, Mr Chan highlighted that two major credit rating agencies recently affirmed Hong Kong’s credit ratings and “stable” outlook. He said this reflected a resilience underpinned by the city’s sound economic fundamentals, robust public finances, and a well-established financial system.
“The Government will analyse and study the various recommendations put forward by the mission,” he said.
The mission visited Hong Kong from March 16 to 27 and held discussions with Government officials, financial regulators and private sector representatives.
The full report will be discussed by the IMF Executive Board later this month.
