Hong Kong Cuts Spending, Invests In Ai

According to the citys finance chief, who presented growth plans that include an artificial intelligence centre, Hong Kong would reduce public spending and restore fiscal balance by mid-2027 following a series of massive deficits.

As Hong Kong faces its most difficult fiscal test in 30 years-annual deficits exceeding US20 billion in four of the last five years-officials are under pressure to balance the books.

The economic downturn in China and the impending trade war between the US and China, which follows President Donald Trumps initial round of tariffs, are also factors being considered.

Similar to the 2.5 per cent growth in the previous year, the economy is predicted to rise by two to three per cent this year.

In his yearly budget address, Financial Secretary Paul Chan stated that the government will limit expenditures to minimise the effect on livelihoods and public services.