Hong Kong expects 4% growth this year

Hong Kong is expecting its economy to rebound by 4% this year following a contraction of 3.5% in 2022. Ratings agency Fitch affirmed Hong Kong at ‘AA-’ with a stable outlook. The Asian financial hub has been battered by pandemic restrictions and a spillover from China’s zero-Covid policies, but recovering consumer spending on the mainland and a rebound in travel are expected to help the economy this year. Fitch forecasts growth of 3.5% in Hong Kong in 2024 and expects the city’s budget deficit to narrow only gradually to about 3.7% of gross domestic product this year. “AA” ratings denote expectations of very low default risk. They indicate a very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.