Hong Kong Is Near End of Budget Deficit Era But Caution Prevails

For a city on the cusp of ending its longest run of budget deficits in two decades, Hong Kong isn’t brimming with confidence just yet.

As a trade war with the US raged around it, Asia’s financial hub surprised with its fastest economic growth since 2021 and stamp duty revenue swollen by a resurgent stock market. The windfall probably narrowed last year’s budget deficit to a fraction of the HK$67 billion ($8.6 billion) previously projected by the government, according to estimates compiled by Bloomberg, with Deloitte anticipating a small surplus.

Paul Chan, Hong Kong’s financial secretary.

Photographer: Lam Yik/Bloomberg

But when Financial Secretary Paul Chan delivers the annual ...