People's Republic of China-Hong Kong Special Administrative Region

The vibrant Hong Kong SAR economy has been supported by low interest rates and mainland China’s economic development over the past decade. But the external outlook is now more challenging. Long-term issues such as aging and a housing supply shortage also loom. Strong policy frameworks and ample buffers are in place to weather a less favorable environment. Prudent fiscal policy and intensive supervision of the financial system have built buffers that can be drawn on when needed.