The 2023-24 Budget: Hong Kong’s Economy Set for Strong Rebound

In his first Budget presented since Hong Kong’s emergence form the COVID-19 pandemic, Financial Secretary Paul Chan announced that Hong Kong’s economy will rebound via abundant opportunities as the city capitalizes on its distinct advantages under the “one country, two systems” principle.

With the external environment deteriorated markedly in 2022 coupled with the hit of the fifth wave of the epidemic domestically, Hong Kong’s economy contracted by 3.5% last year. But on the medium-term outlook, Mr Chan said the economy will see abundant opportunities. He forecast that Hong Kong’s economy will grow by an average of 3.7% per annum in real terms from 2024 to 2027, higher than the trend growth of 2.8% during the decade before the epidemic.

He said, “the current-term Government strives to forge a better integration of a capable government and an efficient market, proactively strengthening competitiveness, identifying new impetus for growth and expanding economic capacity.”

On attracting enterprises and talent, Hong Kong will introduce a new mechanism and new scheme to entice enterprises and talent from around the world to set up in the city.

Hong Kong has been a hub for multinational enterprises for a long time. To explore more market opportunities, the Government will introduce a mechanism to help companies domiciled overseas, particularly enterprises with a business focus in the Asia Pacific region, for re domiciliation to Hong Kong, so that these companies may utilize the city’s favorable business environment and professional services. “We will conduct a consultation and submit legislative proposals in 2023- 24,” Mr Chan added.

Mr Chan also introduced in his Budget a new Capital Investment Entrant Scheme. Applicants should make an investment at a certain amount in the local asset market, excluding property. Upon approval, they may reside and pursue development in Hong Kong. Details of the scheme will be announced later.

For more details on the 2023-24 Budget, click here.