Changes in US trade policy and interest rate trends will significantly affect Hong Kong’s economy but the impact will be “primarily psychological”, the finance chief has said, while expressing optimism for growth momentum to continue into the second half of the year.
Financial Secretary Paul Chan Mo-po also revealed that Hong Kong welcomed 31 million visitors in the first seven months of this year, a 12 per cent increase year on year, while passenger throughput at Hong Kong International Airport rose 11 per cent from last year to 32.8 million.
Two days after the Hong Kong government raised its full-year economic growth forecast for 2026 to a range of 3.5 to 4.5 per cent, Chan, who appeared on a radio show on Sunday, addressed questions about the biggest risks facing the city in the second half of the year.
Chan warned of external risks caused by “psychological factors”, saying changes in US trade policy and interest rate trends would “naturally carry a significant impact” on Hong Kong.
He said interest rates would see little change for the remainder of the year, with one additional 0.25 per cent rate increase already priced in by the market.
“Meanwhile, the US is facing midterm elections, but the risks for the remainder of the year will be manageable,” he said.