Hong Kong: To reduce public recurrent costs by 7 % from now until 2027/28 in order to contain a growing deficit, it plans to use large AI to combat the effects of global economic uncertainty, geopolitical tensions, and a poor housing market.
In announcing the economic capital’s annual budget, the state’s Financial Secretary Paul Chan said,” It provides us with a clear path toward the goal of restoring fiscal stability in the working accounts, in a planned and progressive way.”
After a sharp decline in land sales income over the previous fiscal year, Chan said the “reinforced” fiscal consolidation program laid a” green fiscal basis for future growth.”
He warned that geopolitics will also pose challenges to Hong Kong’s market, with GDP forecasts of between 2 and 3 percent this year.
Hong Kong faces new financial challenges as the upcoming fiscal year, which begins on April 1, with US President Donald Trump’s tax policies posing a threat to derail global growth. Trump has imposed further tariffs of 10 % on goods from China and Hong Kong, which the monetary hub’s government has criticised, claiming Washington has ignored the state’s reputation as a separate customs place.
With HK$ 1 billion to be used to establish an AI Research and Development Institute in line with China’s expanding proper force into AI and other high tech areas, including robotics, Chan stated that Hong Kong may establish AI as a core business.