Financial Secretary Paul Chan Mo-Po Highlights Export Performance as Key to Economic Stability

Hong Kong's Export Performance: A Bright Spot in Economic Forecasts

Financial Secretary Paul Chan Mo-Po recently remarked on the significant role of Hong Kong's export performance in driving the city's economic stability. Chan pointed out that exports have risen for three consecutive quarters, with a notable year-on-year growth of 12.2% recorded in the first half of this year.

Impact on Investment Sentiment and Consumer Confidence

• Export performance has notably improved in key markets including Vietnam, Thailand, and the United States.
• Chan believes that this growth can be sustained if investment sentiment improves.
• Recent retail sales figures indicate a narrowing decline but lack substantial improvement.

Chan remains optimistic about consumer sentiment, highlighting upcoming events aimed at bolstering the finance industry. He anticipates that rising incomes and potential interest rate cuts will enhance visitor arrivals and local consumption.

Geopolitical Considerations and Interest Rates

However, he also expressed concerns about the potential implications of interest rate cuts in America, referencing comments from US Federal Reserve officials. Chan noted that high interest rates, geopolitical tensions, and elections worldwide have affected investment market risk appetite.

1. The timing and extent of interest rate cuts will significantly impact local investment sentiment.
2. Chan emphasized the importance of assessing multiple variables affecting the economy.

City leader John Lee Ka-Chiu echoed Chan’s sentiments, stressing that federal interest cuts could stimulate the local economy by boosting investor confidence. Lee also encouraged industries to embrace technologies like artificial intelligence for future competitiveness.