Hong Kong ‘optimistic’ on economic growth despite global slowdown, Paul Chan saysThe government is more “optimistic” than the International Monetary Fund (IMF) about Hong Kong’s economic growth for the year, the finance chief has said, pointing to the city’s unique position to capitalise on international capital flows and the artificial intelligence (AI) boom.Writing on his blog on Sunday after attending the IMF and World Bank Group’s annual meetings in Bangkok, Financial Secretary Paul Chan Mo-po said world leaders’ discussions had been dominated by two factors: the rapid disruption driven by AI and energy price surges stemming from the Middle East war.He said that while the IMF expected global growth to slow from 3.5 per cent in 2025 to 3.1 per cent this year, Asia’s economy would continue to expand at a faster pace.The IMF recently upgraded its 2026 real gross domestic product growth forecast for Hong Kong to 3.8 per cent, compared with the local government’s forecast of 3.5 to 4.5 per cent.Chan said the government was more “optimistic” than the IMF because Hong Kong was uniquely equipped to respond to shifting global demand.“The two immense demands are clear: developing economies require capital and technology, while mainland Chinese enterprises need international markets and professional services. Both demands converge in Hong Kong,” he said.“Here we can both channel global capital and connect with the mainland’s technology and industries. We have the conditions to enable the development of others while further elevating ourselves.”The financial secretary said he had observed that global economic performance had become increasingly polarised: growth forecasts for war-torn economies were being sharply downgraded, while economies deeply integrated with the AI supply chain were being revised upwards.Citing discussions at the Bangkok summits, Chan said that nearly 30 per cent of global import growth over the past two years was driven by AI-related goods.However, developing countries were expected to face a shortfall of 800 million jobs as 1.2 billion young people from those countries entered the workforce over the next 10 to 15 years.“Technology can either amplify competitive advantages or exacerbate existing risks,” Chan said.He also cautioned against compounding risks, including geopolitical friction, energy supply strains, inflation, extreme weather events, trade disputes and tightened financial conditions.Chan pointed to strained public finances across major economies, noting that sovereign bond yields in several Western countries had soared to roughly 20-year highs. Rising debt costs, he added, were squeezing governments’ fiscal buffers and their ability to absorb sudden external shocks.He said Hong Kong had adopted a “three-pronged” strategy to navigate these risks: channelling long-term patient capital into strategic sectors, broadening offshore renminbi instruments and managing risks through financial tools.Hong Kong should better serve as an indispensable offshore operating base and professional talent hub helping mainland enterprises go global, he said.Chan also said the city should leverage its capital markets to fund foundational AI infrastructure in developing economies, while rolling out citywide AI literacy programmes to ensure residents of all ages could adapt to technological transformation.https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3371288/hong-kong-optimistic-economic-growth-despite-global-slowdown-paul-chan-says?pgtype=live (ICE HONG KONG)

Fonte notizia: South China Morning Post