IMF forecasts strong economic growth for Hong Kong and Bhutan

The International Monetary Fund (IMF) has issued positive growth projections for both Hong Kong and Bhutan, though both regions face distinct economic challenges.

In Hong Kong, Financial Secretary Paul Chan indicated that the city may exceed the IMF’s 3.8% growth forecast. Chan noted that while global growth is expected to cool, Asia’s growth remains significantly faster than the global average. He identified several headwinds, including geopolitical tensions, energy supply shortages, inflation, and trade frictions. Additionally, Chan highlighted Hong Kong’s role in expanding currency options, noting an increase in RMB bond issuances by developing economies.

Bhutan is also projected to grow faster than the average for emerging and developing Asia. The IMF expects Bhutan’s real GDP growth to moderate from 8.2% in 2025 to 7.0% in 2026 and 6.9% in 2027. However, this expansion is accompanied by rising consumer price inflation, projected to reach 6.5% by 2027, and a widening current account deficit, which is expected to reach 17.7% of GDP by 2027.