Hong Kong may record an operating surplus for the current financial year if economic momentum continues, rather than the previously expected deficit, RTHK reported Financial Secretary Paul Chan as saying.
Chan told a radio program that the government originally forecast a deficit of “a few billion” in the operating account for the fiscal year ending March 2026 but there is a chance of a surplus if growth continues into the second half, according to RTHK.
The finance chief said he expected surpluses to be recorded “each year from 25/26,” even with the consolidated account still in deficit because revenue from land sales has not recovered.
Chan’s remarks come after Hong Kong’s economy grew at the fastest pace in more than a year in the second quarter, bolstered by local spending and strong exports as global companies frontloaded shipments to avoid US President Donald Trump’s tariffs.
The finance chief said the rate of economic growth may slow in the third quarter from the first half, which was buoyed by strong export activity, RTHK reported.
The Hong Kong government is shrinking its workforce and cutting spending as falling land sales continue to hurt a key source of tax revenue, with the city recording a budget deficit for the past three years.
