Hong Kong's economy is projected to expand between 2% and 3% in 2025, following a 2.5% growth rate in 2024, according to Financial Secretary Paul Chan. The forecast comes as authorities grapple with a widening fiscal deficit, a sluggish property market, and ongoing global economic uncertainty.

Speaking on Wednesday, Chan emphasized the government's commitment to economic stability despite external pressures. Hong Kong's budget deficit is expected to reach HK$101.6 billion ($13 billion) in the 2024-25 financial year, marking the third consecutive year of shortfalls. The government plans to introduce measures to boost revenues and maintain fiscal discipline while continuing investments in innovation, tourism, and financial services.

The city's property sector, a key driver of economic activity, remains weak, with falling home prices and subdued demand. To support the market, authorities have eased mortgage rules and reduced stamp duties, aiming to stimulate transactions and restore investor confidence.

Despite challenges, Hong Kong remains a vital financial hub, benefiting from its strategic position and deep connections with mainland China. However, global economic headwinds, including high interest rates and geopolitical tensions, could pose risks to sustained recovery.

Chan reaffirmed the government's long-term vision to strengthen Hong Kong's competitiveness by fostering digital transformation, enhancing trade relations, and diversifying economic growth. As the city navigates fiscal constraints, authorities are balancing short-term stimulus with long-term economic resilience.

With proactive policy measures and strategic investments, Hong Kong aims to maintain steady growth, though uncertainties in the global economy and real estate sector may impact the recovery trajectory.