On January 23, 2018 International Monetary Fund published the latest report which notes the city was well positioned to navigate external and domestic challenges, helped by strong fiscal reserves and robust regulatory and supervisory frameworks, which have been strengthened in the past decade. The IMF also said it continues to support the Linked Exchange Rate System, which remains the best arrangement for the city. Monetary Authority Chief Executive Norman Chan said the IMF’s continued support for the system validates its robustness and its importance to the economic and financial stability of Hong Kong.
Earlier Financial Secretary of Hong Kong Paul Chan said he expects the government to record a surplus this financial year. Writing in his blog, Chan said as of the end of November the surplus had already reached HK$57.2 billion, which is higher than the HK$16.3 billion predicted for the whole period.
Accounting firm, PricewaterhouseCoopers, expects the government budget surplus to hit HK$168 billion in the current fiscal year – over ten times the original forecast by the Financial Secretary Paul Chan.
The firm said a surge in revenue from land sales, profits tax and stamp duty contributed to the “greater than predicted" surplus. It said the government fiscal reserves will stand at more than HK$1.12 trillion by the end of March – equivalent to 30 months of government expenditure.
