2024-2025 budget likely to focus on boosting recovery: expert

UOB experts expect measures on housing, low fertility, and talent.

Hong Kong’s budget for the next fiscal year will likely remain expansionary to boost the recovery next year, UOB said.

Stephen Li, head of Global Markets, Greater China, at UOB, said the budget will also include measures on housing, low fertility, and talent to revitalise the economy.

Once the budget for 2024-2025 is tabled in February, UOB expects official forecasts for 2024 to be released.

UOB, for its part, retained a growth outlook of 2.5% for 2024.

On the inflation front, UOB expects domestic prices to start to accelerate as improving domestic demand and wage growth translate into higher costs for businesses. 

“Planned cuts to residential electricity charges will offset some inflation for households,” UOB commented.