Hong Kong flags spending cut, AI push in bid to reverse booming deficit

Hong Kong aims to cut public recurrent expenditure by 7% from now till 2027/28 to rein in a rising deficit and plans a big AI push as it tries to mitigate headwinds from global economic uncertainty, geopolitical tensions and a weak property market. "It gives us a clear pathway towards the goal of restoring fiscal balance in the operating account, in a planned and progressive manner," said the city's Financial Secretary Paul Chan in announcing the financial hub's annual budget. He warned "geopolitics will still bring challenges to Hong Kong's economy" with GDP forecast to grow between 2-3% this year.