Global Macro Service > Research Briefings > Hong Kong Sar

Reduced budget deficit will slow growth recovery

In our view, the Hong Kong SAR fiscal 2021 budget provides insufficient support to the fragile recovery. Although we expect GDP to grow 4% this year, economic output will remain significantly below its potential. The withdrawal of fiscal stimulus – with the deficit budgeted to decline around 6ppts of GDP – will limit the recovery from the 2019-2020 slump.

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