IMF says Hong Kong’s growth will drop to 3% this year

Hong Kong’s strict virus control measures will result in the city’s experiencing slower economic growth this year, but the International Monetary Fund (IMF) said the zero-Covid policy will not affect its financial centre status. The IMF said Hong Kong’s economic growth will decline to 3% this year from last year’s 6.4%. Other economists have also downgraded their forecasts. Aside from the strict virus control measures, the IMF said a slower-than-expected global recovery and continued disruption of global supply chains, among others, could drag down the city’s growth. However, ample policy buffers and a strong external position should help to offset any adverse impact on Hong Kong’s financial stability and economic growth, the IMF stressed in its assessment.