FS cautiously optimistic in H2 despite global risks

Financial Secretary Paul Chan has expressed cautious optimism about Hong Kong's economic outlook for the second half of the year, emphasizing the city's resilience in navigating potential global disruptions. Speaking on a radio program, Chan pointed out that the economy performed well in the first half, propelled by robust export activity and stable external demand.

He cited positive indicators such as 14 months of consecutive retail sales growth and a slight rise in the catering sector. Financially, Chan noted stabilisation in property and stock markets with a positive bias, and a favorable labor market. Despite these strong indicators, Chan acknowledged external challenges, primarily US trade policies and interest rate changes, as potential risks to Hong Kong's economy.

However, he does not expect significant changes in the near term, with no major interest rate adjustments anticipated for the rest of the year. Chan noted that the US, while still a key trading partner, has less influence compared to Southeast Asia and other regions in terms of export volumes. He also highlighted the adaptability of Hong Kong and mainland companies to changing market conditions.

Chan emphasized the importance of managing risks effectively to ensure stability and growth, even amidst geopolitical uncertainties like the Middle East conflict and potential supply chain disruptions.