Following the completion of the 2026 Article IV Consultation with the Hong Kong Special Administrative Region (HKSAR), the International Monetary Fund (IMF) Staff Mission published the Concluding Statement today (May 15), outlining its assessment on Hong Kong's economic and financial situation.
      
     The Mission notes that Hong Kong's economy has continued to recover, supported by robust technology-related exports, improving private demand and a rebound in financial market activity.  
      
     The Mission reaffirms Hong Kong's role as an international financial centre and a "super connector", particularly as a leading fundraising hub and a premier offshore Renminbi centre. The Mission also acknowledges that policy initiatives, including the development of the Northern Metropolis, are conducive to the development of innovation and high-value services in Hong Kong, supporting economic growth and structural transformation.
      
     The Mission considers the fiscal stance in 2026 as appropriate given the current economic conditions, while supporting a focus on achieving stronger medium-term consolidation to rebuild fiscal reserves and address rising spending pressures. 
      
     The Mission acknowledges that financial sector risks are manageable, supported by strong buffers and robust regulatory oversight. As noted by the Mission, banks remain well capitalised, liquid, and profitable, while the Linked Exchange Rate System (LERS) continues to be an appropriate and credible anchor for macroeconomic and financial stability. The Mission commends the continued efforts to strengthen the monitoring framework for the non-bank financial institution sector, noting that expanded risk assessments and targeted stress testing have improved early-warning capabilities.
      
     The Mission recognises that Hong Kong is well placed to build further on its digital and sustainable finance agenda, supported by effective implementation and robust systemic oversight. The Mission also highlights that the "Fintech 2030" strategy aims to modernise market infrastructure as well as to promote responsible AI innovation and asset tokenisation within a robust regulatory framework.
      
     The Financial Secretary, Mr Paul Chan, said, "We welcome the Mission's assessment of Hong Kong's ongoing economic recovery and its support for the Government's fiscal policies to drive economic growth and achieve economic diversification.
      
     "The Hong Kong economy expanded robustly in the first quarter of 2026. Looking ahead, Hong Kong's economic growth outlook is positive, underpinned by strong global demand for AI-related electronics, sustained growth in visitor arrivals and robust cross-boundary financial activities. A favourable business environment and the gradual improvement to consumer sentiment will continue to support domestic demand. We will closely monitor the development of the situation in the Middle East, dynamically assess the economic situation, and react flexibly.
      
     "We note the views in the Concluding Statement on Hong Kong's commercial real estate (CRE) sector. In the post-epidemic era, the global CRE market has generally faced challenges amid changing office work and consumption patterns. The Government has in recent years introduced a series of market-stabilising policy measures, including suspending the sale of commercial land and encouraging developers to convert suitable vacant office space into student hostels. Currently, Hong Kong's CRE market has stabilised, with transaction and leasing volumes rising significantly, and prices and rents becoming steady.
      
     "On the pace of fiscal consolidation, the reinforced fiscal consolidation programme is progressing as planned. According to the Medium Range Forecast set out in the 2026-27 Budget, the Operating Account will record surpluses for each of the next five years, with surpluses increasing year by year, reflecting the effectiveness of the Government's measures to increase revenue and control expenditure. The Capital Account will still record deficits during this period, resulting in a deficit (before issuance and repayment of bonds) in the Consolidated Account, mainly due to the Government's enhanced infrastructure spending in accelerating the development of the Northern Metropolis and proactively creating capacity for Hong Kong's high-quality development. These investments for the future will bring broader economic benefits and tax revenues to Hong Kong. We will make good use of market forces to finance these infrastructure projects.
      
     "In fact, two major credit rating agencies have recently affirmed Hong Kong's credit rating and 'stable' outlook, reflecting Hong Kong's considerable resilience underpinned by its sound economic fundamentals, robust public finances, and a well-established financial system.
      
     "The Government will analyse and study the various recommendations put forward by the Mission."
      
     The Chief Executive of the Hong Kong Monetary Authority, Mr Eddie Yue, said, "I welcome the Mission's continued support for the LERS, a key anchor of Hong Kong's financial system and economy. I am pleased to note the Mission's recognition of our robust regulatory and supervisory frameworks, underpinned by strong buffers and prudent practices in the banking sector. I also appreciate the Mission's affirmation of Hong Kong's role as an international financial centre and a "super connector" between the Chinese Mainland and the rest of the world."
      
     The Mission visited Hong Kong from March 16 to 27, 2026, with discussions held with HKSAR Government officials, financial regulators and private sector representatives. The Concluding Statement is in the Annex. The relevant full report will be discussed by the IMF Executive Board later this month.

Ends/Friday, May 15, 2026
Issued at HKT 17:48

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