Fitch affirms Hong Kong at AA- with stable outlook

RATINGS agency Fitch affirmed Hong Kong at ‘AA-’ with a stable outlook on Thursday (Mar 30), forecasting its economy to rebound by 4 per cent this year, following a contraction of 3.5 per cent in 2022.

The Asian financial hub has been battered by pandemic restrictions and a spillover from China’s zero-Covid policies, but recovering consumer spending on the mainland and a rebound in travel are expected to help the economy this year.

The ratings agency forecasts growth of 3.5 per cent in Hong Kong in 2024 and expects the city’s budget deficit to narrow only gradually to about 3.7 per cent of GDP this year.

“AA” ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. REUTERS