Hong Kong Projects HK$100 Billion Deficit for 2024-25 Amid Revenue Shortfall

Financial Secretary Paul Chan cites a weak property market and declining land sale revenues as key factors in the worsening fiscal outlook.

Hong Kong's 2024-25 fiscal deficit is now projected at HK$100 billion, more than double the HK$48 billion forecast earlier this year.
The city's reliance on land sales, stamp duties, and corporate taxes has been heavily impacted by a sluggish property market and weakened corporate performance.
Financial Secretary Paul Chan has highlighted the need to cut government expenses and reallocate resources to address the structural revenue challenges.
The government is also considering measures such as external financing and potential tax increases to manage the growing deficit, though borrowing would require careful project selection.
Hong Kong's GDP growth forecast for the year has been downgraded to 2.5%, reflecting weaker global demand and subdued local consumption.