The eight articles in the Hong Kong Economic Policy Green Paper 2025 focus on the following analysis:
In recent years, as Hong Kong's deficit level has hit a record high and ranked among the top among developed economies, the fiscal deficit has become a severe new challenge facing the Hong Kong Special Administrative Region. The study found that most of the deficit comes from structural deficits, which cannot be alleviated by passive means of economic lebanon telegram data growth alone, but requires active adjustments to fiscal policy. Land revenue contributes a considerable proportion of fiscal revenue, but its volatility also creates high risks and often triggers revenue fluctuations, necessitating more prudent risk management. Looking ahead, the government needs to strike a balance between alleviating the deficit and pursuing fiscal policy, and the government has been proactive in adjusting fiscal policy.
On the other hand, Hong Kong has accumulated sufficient fiscal reserves over the years. There has been some decline in recent years, but today’s reserve levels are still among the highest in the world, with limited downside risks. In addition, the SAR government should make full use of the quota of the government bond program to raise funds for infrastructure investment without compromising long-term fiscal sustainability, and thereby promote the development of the capital market and the internationalization of the RMB.
Revitalizing the Hong Kong Stock Market: Key Challenges and Strategic Solutions