The International Monetary Fund released its endorsed Staff Report today which reinforces the conclusions of the Fund's assessment of Hong Kong's economic and financial positions published in December.
The Hang Seng index has been under intense pressure since the start of 2016 and the Hong Kong dollar has also been in the cross hairs of speculators. Most observers also see the Hong Kong real estate market softening this year adding to the fiscal strain.
However The International Monetary Fund (IMF) is highly supportive of the Hong Kong Government's proactive fiscal policy, robust regulatory regime for the financial system, and demand-side management measures for the property market.
Hong Kong in robust shape
The IMF considers that these measures have built up strong fiscal and financial buffers in Hong Kong to minimise the impact of any near-term shocks, and to secure the healthy growth of the economy in the medium term. The IMF also reiterates its continued support for the Linked Exchange Rate System.
«The IMF's long-standing support for the Linked Exchange Rate System reaffirms the importance of the system to our financial stability. I am also pleased to note the Fund's endorsement of our macroprudential measures in enhancing the resilience of our banking system,» the Chief Executive of the Hong Kong Monetary Authority Norman Chan, said,
The IMF Mission visited Hong Kong in November 2015 to conduct the IMF Article IV consultation discussions.
