Hong Kong Aims for Strong Economic Growth, Prioritizing Science and Tech Innovation in New Budget

Hong Kong. Hong Kong Special Administrative Region Government Financial Secretary Paul Chan, presenting the budget for 2026-27, stated that Hong Kong will continue its strong momentum of economic expansion, making science and technology innovation the new engine for growth.

Due to increased tax revenue in the 2025-26 fiscal year and the rebound in the economy and capital markets, the operating account has returned to a surplus. He noted that the robust fiscal consolidation program has replenished government coffers. Chan mentioned that this year marks the start of China's 14th Five-Year Plan (2026-2030), and Hong Kong will integrate into national development to foster new high-quality productive forces and assist enterprises in exploring new markets.

According to Chan, Hong Kong's economic growth in 2026 is projected to be between 2.5 and 3.5 percent. The underlying inflation rate is projected at 1.7 percent, and the overall inflation rate at 1.8 percent. From 2027 to 2030, Hong Kong's economy is expected to grow by an average of 3 percent real growth annually, with underlying inflation averaging 2 percent.

The budget renewed its commitment to promoting science and technology innovation. According to the budget, the operating account will remain in surplus from 2026-27 to 2030-31. The capital account, however, will run an annual deficit due to high capital expenditure. The issuance of bonds for infrastructure projects will be increased, which is considered an investment in Hong Kong's future. During this period, fiscal reserves are expected to gradually increase to over HKD 700 billion.