IMF commends HK’s fiscal policy

The International Monetary Fund (IMF) Article IV Mission commended the Hong Kong Special Administrative Region Government’s efforts to boost economic growth and safeguard financial stability. 


The mission made the assessment in its Concluding Statement which was published today following the completion of the 2023 Article IV Consultation with the Hong Kong SAR.


The mission considers that Hong Kong’s financial system remains resilient and the city continues to play its role as an international financial centre under the challenging global macro-financial environment.


It also noted that the resilient financial system is premised on Hong Kong’s strong institutional frameworks, in particular the high-quality financial sector oversight, substantial capital and liquidity buffers, and the well-functioning Linked Exchange Rate System. As economic activity normalises, Hong Kong’s economy is recovering strongly.


Financial Secretary Paul Chan welcomed the highly positive assessment of Hong Kong.


“The mission fully recognises that Hong Kong’s economy is demonstrating momentum for a strong recovery, and commends that the Hong Kong SAR Government’s fiscal policy has robustly led Hong Kong in navigating through the economic challenges in the past few years.


“Once again, the mission affirms that Hong Kong’s high-quality financial sector oversight ensures the resilience of the financial system, while upholding Hong Kong’s status as a premier international financial centre in the evolving global environment. 


“The Concluding Statement commends the Government’s multifarious efforts to boost economic growth, including the establishment of the Co-Investment Fund to support innovation and technological development, enhancement of the talent attraction programmes, adoption of a more co-ordinated approach to increase residential land and housing supply, etc.


“The mission’s positive assessment is a reflection of our capability, determination and accomplishment in maintaining financial stability and economic growth.


“It also clearly shows that under our new policy vision of integrating a ‘capable government’ and a ‘highly efficient market’, we are leaping forward steadily and bolstering prosperity.”


Monetary Authority Chief Executive Eddie Yue also welcomed the mission’s recognition of the city’s robust regulatory and supervisory frameworks, which have built up strong capital buffers and ample liquidity to safeguard financial stability amidst global and market uncertainties.


The mission visited Hong Kong from March 20 to 31 and held discussions with Government officials, financial regulators and private sector representatives year for the 2023 Article IV Consultation with the Hong Kong SAR.


The relevant full report will be discussed by the IMF Executive Board this month.