The IMF commends Hong Kong's economic resilience and recovery, though pre-Covid levels are yet to be reached. The fund warns of risks from escalating geopolitical tensions and suggests fiscal reforms, including a goods and services tax.

The International Monetary Fund (IMF) has lauded the resilience of Hong Kong’s economy, noting a sustained recovery despite economic activity having yet to return to pre-Covid levels, while warning of downside risks stemming from escalating geopolitical tensions. It also urged Hong Kong to pursue medium-term financial reforms, including the introduction of a goods and services tax, to stabilise and strengthen public revenue. A concluding statement by an IMF mission that visited Hong Kong in...