Finance chief Paul Chan Mo-po delivered the address, painting an optimistic picture. Last year, the economy expanded 3.5 percent, fueled by strong exports, consumer spending surges, and investment booms—achieving growth for the third straight year.

Forecasts for this year predict 2.5-3.5 percent GDP increase, paired with 1.8 percent inflation. Chan emphasized resilience: ‘External challenges persist, but our fundamentals shine.’

A centerpiece is the new ‘AI+ and Industrial Development Strategy Committee’ under Chan’s leadership. It will craft policies to advance AI in industry, fostering supportive ecosystems. Invitations extend to scholars, enterprises, and tech parks, targeting life, health, and embodied intelligence first.

This comes as AI applications accelerate worldwide. Hong Kong aims to capitalize, blending finance prowess with tech innovation. Budget measures support R&D, talent attraction, and infrastructure upgrades.

Market reactions were positive, with stocks ticking up. ‘Strategic AI focus aligns with global trends,’ said a sector expert. Private consumption and investments will receive targeted stimuli to maintain trajectory.

As Beijing backs Hong Kong’s role in Greater Bay Area integration, this budget reinforces its innovation hub status. Steady growth projections reflect confidence, setting the stage for long-term competitiveness.