People’s Republic of China-Hong Kong Special Administrative Region: Selected Issues

January 22, 2018

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Format: Chicago

People’s Republic of China-Hong Kong Special Administrative Region: Selected Issues, (USA: International Monetary Fund, 2018) accessed September 19, 2024

Summary

This Selected Issues paper examines medium-term fiscal prospects and policy recommendations for Hong Kong Special Administrative Region (SAR). Hong Kong SAR’s fiscal framework has worked well over the last 20 years but challenges have emerged that will strain the fiscal position in the medium to long term. Consequently, while fiscal space is ample currently, it could become gradually constrained over time. The fiscal rule should be implemented flexibly and revenue mobilization needs to be considered down the road. On the expenditure side, containment will be hard, given rapid aging and still high inequality. The challenge will be to maintain investment and boost land supply while increasing social spending to guarantee that those who need support are effectively protected.

Subject: Balance of payments, Capital flows, Expenditure, Fintech, Housing prices, Prices, Revenue administration, Technology

Keywords: Business cycle, Capital flows, China, CR, Fed rate hike, Fintech, Global, Government policy, Growth synchronization, Headline growth, Housing prices, Interest rate, ISCR, Mainland China's influence, SAR, SAR-Macao SAR-Bay Area Development

Publication Details

Pages:

59
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/017
Stock No:

1HKG2018002
ISBN:

9781484338377
ISSN:

1934-7685

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