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People’s Republic of China-Hong Kong Special Administrative Region: Selected Issues
Author:
International Monetary Fund
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2018: Issue 017
Language:
English
Publication Date:
22 Jan 2018
DOI:
https://doi.org/10.5089/9781484338377.002
ISBN:
9781484338377
ISSN:
1934-7685
Pages:
59
Keywords:
ISCR; CR; China; business cycle; SAR; interest rate; government policy; Fed rate hike; Mainland China's influence; growth synchronization; SAR-Macao SAR-Bay Area Development; headline growth; Housing prices; Capital flows; Fintech; Global
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This Selected Issues paper examines medium-term fiscal prospects and policy recommendations for Hong Kong Special Administrative Region (SAR). Hong Kong SAR’s fiscal framework has worked well over the last 20 years but challenges have emerged that will strain the fiscal position in the medium to long term. Consequently, while fiscal space is ample currently, it could become gradually constrained over time. The fiscal rule should be implemented flexibly and revenue mobilization needs to be considered down the road. On the expenditure side, containment will be hard, given rapid aging and still high inequality. The challenge will be to maintain investment and boost land supply while increasing social spending to guarantee that those who need support are effectively protected.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund