Impact of US trade policy shifts on Hong Kong ‘primarily psychological’: Paul Chan
Hong Kong's Financial Secretary Paul Chan stated that the impact of US trade policy shifts and interest rate trends on the city's economy is primarily psychological. Despite external risks, the government remains optimistic about growth, citing strong tourism and airport traffic figures.
Why it matters
Hong Kong's economic outlook remains sensitive to US-China geopolitical tensions, requiring careful risk management to maintain market stability.
Changes in US trade policy and interest rate trends will significantly affect Hong Kong’s economy but the impact will be “primarily psychological”, the finance chief has said, while expressing optimism that growth momentum will continue in the second half of the year.
Financial Secretary Paul Chan Mo-po also revealed on Sunday that Hong Kong welcomed 31 million visitors in the first seven months of 2026, a 12 per cent year-on-year increase. Passenger traffic at Hong Kong International Airport rose 11 per cent year on year to 32.8 million in the first half.
Two days after the government raised its full-year economic growth forecast for 2026 to a range of 3.5 to 4.5 per cent, Chan, who appeared on a radio show on Sunday, addressed questions about the biggest risks facing the city in the second half of the year.
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