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Hong Kong expects GDP growth of 2%-3% in 2017

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Staff Writer | February 22, 2017
Hong Kong's economy is expected to grow 2% to 3% this year, improving from last year's 1.9% expansion, Financial Secretary Paul Chan said.
Paul Chan
China   Inflationary pressures
Chan said inflationary pressures will remain subdued in the short term. He said he expects headline inflation of 1.8% in 2017, with underlying inflation at 2%.

Hong Kong's gross domestic product grew 3.1% in the fourth quarter from the previous year, government data showed. On a seasonally adjusted basis, GDP expanded 1.2% in the three months ended December from the previous quarter.

As part of efforts to stimulate domestic demand and boost economic growth, Chan unveiled a 35.1 billion Hong Kong dollars ($4.52 billion) package of short-term relief measures, including tax breaks and handouts.

For example, salaries and profits taxes for 2016-2017 will be reduced by 75%, with the cap at HK$20,000 each.

Chan said the city's budget surplus will likely hit HK$92.8 billion for the fiscal year ending March, while fiscal reserves are expected to hit HK$935.7 billion.