ON January 10, 2018, the executive board of the International Monetary Fund (IMF) concluded the Article IV consultation discussions with Hong Kong Special Administrative Region (SAR).
Economic activity in Hong Kong SAR has gained momentum since the second half of 2016 amid robust domestic demand and recovering external demand, and growth is projected to have risen by 3.7 per cent in 2017, up from 2 per cent in 2016.
The strong growth momentum is expected to continue in the near term with annual growth of 2.8 per cent in 2018.
Consumption is projected to continue to be supported by a tight labour market and investment is expected to remain strong, with major infrastructure and housing projects in the pipeline.
The economy is expected to continue to grow at about 3 per cent over the medium term, close to its potential.
Despite increasing rates amid rising US rates, overall financial conditions remain accommodative.
