IMF praises Hong Kong's role in boosting economy, safeguarding financial stability

The International Monetary Fund (IMF) praised the role of Hong Kong’s Special Administrative Region (HKSAR) in boosting its economy and safeguarding the stability of its financial system in a statement released Thursday after completing the 2023 Article IV Consultation Discussions with Hong Kong.

It affirmed Hong Kong’s achievement as an international financial center amid a challenging global macro-financial environment.

According to the statement, Hong Kong’s financial system has remained stable amid challenging macro-financial conditions, which is supported by strong institutional frameworks, high-quality financial sector oversight, substantial capital, liquidity buffers, and the well-functioning Linked Exchange Rate System.

And transition to the post-pandemic new normal in both Hong Kong and the Chinese mainland could be smoother and more rapid than anticipated with strong pent-up demand, leading to a faster-than-expected economic recovery including inbound tourism.

The mission recommends that the HKSAR Government continue to strengthen linkages with other cities of the Greater Bay Area and members of the Regional Comprehensive Economic Partnership. It also suggests that devoting more resources to innovation and technological development can provide additional growth engines and boost economic vibrancy.

Paul Chan Mo-po, Financial Secretary of the Hong Kong SAR Government, welcomed the mission’s positive assessment.

“The Mission’s positive assessment is a reflection of our capability, determination and accomplishment in maintaining financial stability and economic growth," Chan said.

“It also clearly shows that under our new policy vision of integrating a 'capable government' and a 'highly efficient market', we are leaping forward steadily and bolstering prosperity,” he added.