Hong Kong’s new budget bets on growth to reduce ballooned fiscal deficit
Alicia García Herrero (Natixis) | Hong Kong has experienced three years of recession within the last four. The ripple effect is painful with a persistent fiscal deficit. The recent budget does not change the trend as the fiscal account (excluding bond issuance) will remain in deficit at 3.9% of GDP in FY 23/24, despite an improvement from -7.3% of GDP in FY 22/23. Hong Kong’s fiscal reserves also depleted from…