Hong Kong’s deficit will more than double to HK$100 billion (US$12.8 billion) in the 2024-25 financial year from the HK$48 billion forecast the previous year, the finance chief has said, with the city feeling the pinch from a property slump and weakened corporate performance.
At a meeting of the Legislative Council’s financial affairs panel on Monday, Paul Chan Mo-po revealed the deficit was substantially worse than what he estimated at the beginning of this year as the soft property market had taken a heavy toll on the government’s income generated by land sales, stamp duty and corporate taxes.
“The government’s income was far lower than expected,” the financial secretary said. “Before September, property transactions were very slow, which affected our stamp duty income.”
The latest’s deficit estimate at HK$100 billion was similar to 2023-24 level of HK$101.6 billion.
The government has also recently downgraded its full-year gross domestic product forecast to 2.5 per cent year-on-year growth, citing weaker global demand and local consumption.
More to follow …
