Fitch affirms Hong Kong at AA- with stable outlook

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% in Hong Kong in 2024 and expects the city's budget deficit to narrow only gradually to about 3.7% of GDP this year.

Ratings agency Fitch affirmed Hong Kong at 'AA-' with a stable outlook on Thursday, forecasting its economy to rebound by 4% this year, following a contraction of 3.5% 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% in Hong Kong in 2024 and expects the city's budget deficit to narrow only gradually to about 3.7% 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.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)