People's Republic of China-Hong Kong Special Administrative Region: 2019 Article IV Consultation Discussions-Press Release; Staff Report; Staff Statement and Statement by the Executive Director for the People's Republic of China-Hong Kong Special Administrative Region

December 30, 2019

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People's Republic of China-Hong Kong Special Administrative Region: 2019 Article IV Consultation Discussions-Press Release; Staff Report; Staff Statement and Statement by the Executive Director for the People's Republic of China-Hong Kong Special Administrative Region, (USA: International Monetary Fund, 2019) accessed December 22, 2024

Summary

This 2019 Article IV Consultation with People’s Republic of China—Hong Kong Special Administrative Region (SAR) discusses that the economy is projected to start recovering next year, but the pace is expected to be gradual and both near- and medium-term risks have increased significantly, including from trade and technology tensions, ongoing social unrest, and structural challenges of insufficient housing supply and high income inequality. Hong Kong SAR is well placed to address both cyclical and structural challenges with its significant buffers thanks to its long history of prudent macroeconomic policies. Given that the fiscal framework permits deficits during economic downturns, government spending should be increased significantly in the areas of social safety nets, education/retraining, and infrastructure to cope with the cyclical downturn and address structural challenges of insufficient housing and high-income inequality. This should be complemented with measures to ensure fiscal sustainability and greater equity.

Subject: Banking, Economic and financial statistics, External sector statistics, Financial sector policy and analysis, Housing, Housing prices, Macroprudential policy instruments, Monetary statistics, National accounts, Prices

Keywords: Article IV consultation discussion, China, CR, Exchange regime, External sector statistics, Global, HK dollar, Hong Kong SAR, Housing, Housing prices, ISCR, Macroprudential policy instruments, Market expectation, Market vulnerability, Monetary statistics, Price, Property market development

Publication Details

Pages:

89
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2019/394
Stock No:

1HKGEA2019003
ISBN:

9781513524627
ISSN:

1934-7685

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