'Economy Expected To Grow Up To 5.5 Percent In 2021'

The Financial Secretary, Paul Chan, said he expects the Hong Kong economy to return to positive growth and expand by 3.5 to 5.5 percent this year.

Delivering his annual budget speech on Wednesday, Chan said the roll out of Covid-19 vaccination schemes around the world means there'll likely be significant improvements in the global economy in 2021.

“I forecast that the headline inflation rate and the underlying inflation rate will be 1.6 per cent and one per cent respectively this year,” he added.

The financial chief is also optimistic that the SAR will continue to do well over the next few years, as the city benefits from development on the mainland.

In the medium term, he said expects the local economy to grow by an average of 3.3 per cent per annum from 2022 to 2025, while the underlying inflation rate will average two per cent.

Earlier, Chan said the Hong Kong economy contracted an unprecedented 6.1 percent in 2020 after the Covid-19 pandemic caused “unprecedented repercussions” on the global economy.

"It is also the first time for Hong Kong to register two consecutive years of negative growth,” he said.