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People’s Republic of China—Hong Kong Special Administrative Region: 2023 Article IV Consultation Discussions-Press Release; and Staff Report
Author:
International Monetary Fund. Asia and Pacific Dept
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2023: Issue 186
Language:
English
Publication Date:
31 May 2023
DOI:
https://doi.org/10.5089/9798400243905.002
ISBN:
9798400243905
ISSN:
1934-7685
Pages:
80
Keywords:
Hong Kong SAR economy; exchange rate system; rate of HK; GDP compilation; transparency policy; household expenditure survey; Hong Kong SAR authority; Hong Kong SAR official; return on equity; expenditure measure; Housing; External sector statistics; Housing prices; Credit; Global
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This 2023 Article IV Consultation discusses that the economic recovery in Hong Kong Special Administrative Region (SAR) stalled in 2022 following a major coronavirus disease 2019 outbreak and U.S. monetary policy tightening. However, in 2023, real gross domestic product is projected to grow by 3.5 percent. The financial system remains resilient and continues to serve as an international financial center, supported by strong institutional frameworks and substantial capital and liquidity buffers. The Linked Exchange Rate System continues to function smoothly, providing a solid anchor to the economy and the financial system, allowing the latter to perform its role as an international financial center. Housing prices, which declined by about 16 percent by end-2022 from the peak in September 2021, have started to recover in early 2023. Near-term risks to the growth outlook are balanced, with systemic risk in the financial sector manageable given significant buffers. A sharper-than-expected global growth slowdown as well as escalation of regional conflicts and resulting disruptions in trade could derail the recovery. A sharp rise in global risk premia amid renewed stress in the global banking system and further tightening of monetary policy in major advanced economies could have adverse spillovers through financial channels.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund