IMF report recognizes SAR’s strong economic recovery

Paul Chan, Financial Secretary of Hong Kong

The International Monetary Fund (IMF) has reinforced its assessment of Hong Kong’s economic and financial positions, recognizing that Hong Kong’s financial sector has continued expanding robustly even during the COVID-19 pandemic.

In its Staff Report released yesterday, the IMF reaffirmed Hong Kong’s position as a major global financial center with a resilient financial system, sound macroprudential policies, and robust regulatory and supervisory frameworks.

The IMF also welcomed that a large fiscal stimulus has helped mitigate the impact of economic shocks and speed up economic recovery. It supports the Hong Kong Special Administrative Region (HKSAR) government’s three-pronged approach to containing housing market risks and increasing housing affordability.

Paul Chan, financial secretary of the HKSAR government, said, “I welcome the IMF’s recognition of our strong economic recovery supported by swift and bold policy responses.”

The HKSAR government will continue to closely monitor the local epidemic situation, take necessary and effective fiscal measures and further strengthen Hong Kong’s already robust institutional frameworks with a view to fostering economic recovery after the pandemic and safeguarding financial stability, he said.

Eddie Yue, chief executive of the Hong Kong Monetary Authority, said, “I welcome the IMF’s reaffirmation of the robustness and resilience of our banking and financial system. The well-functioning Linked Exchange Rate System will continue to be an anchor of economic and financial stability for Hong Kong.”

The IMF Mission held virtual discussions with government officials, regulators, and private sector representatives in Hong Kong on Dec. 1-15, 2021. The Concluding Statement of the Mission’s assessment was published on Jan. 20, 2022. The Staff Report, substantiated by a more detailed analysis, was endorsed by the IMF Executive Board last Feb. 2022. Xinhua