Citibank: The budget confirms that the scope of Hong Kong's economic recovery will expand, with fiscal reserves expected to remain stable.

Citi released a research report stating that the Hong Kong 2026/27 budget confirmed an expanded scope of economic recovery, benefiting from strong tax revenues and capital gains taxes from financial activities, allowing Hong Kong to return to surplus after years of deficits. The bank expects Hong Kong's fiscal reserves to remain stable, supporting long-term capital expenditures for ongoing development projects through fiscal allocations and bond issuances. The bank holds a constructive view on the expanded scope of Hong Kong's economic recovery, in line with the government's forecast range of 2.5% to 3.5% GDP growth for 2026. The government is consolidating funds through the accumulation of surplus in the bond funds and investment returns from the exchange fund to support projects in the northern metropolitan area and other capital expenditures. This strategic reallocation aims to drive future economic growth. Meanwhile, public debt issuance will increase, with the borrowing limit for green and infrastructure bonds raised. The overall debt-to-GDP ratio is expected to be maintained at a manageable level of 14.4% to 19.9%.