IMF Study on Hong Kong SAR

• Pages: 3-

Page 3

Hong Kong SAR: Meeting the Challenges of Integration with the Mainland

Edited by Eswar Prasad, with contributions from Jorge Chan-Lau, Dora Iakova, William Lee, Hong Liang, Ida Liu, Papa N'Diaye, and Tao Wang

This Occasional Paper provides an overview of the main challenges facing Hong Kong SAR as it continues to become more closely integrated with the Mainland of China. Section I summarizes the recent macroeconomic developments and the main policy issues in Hong Kong SAR. Section II presents the various dimensions of the ongoing economic and financial integration with the mainland, the outlook for further integration of these economies, and the associated implications for the structure of the economy and for macroeconomic and structural policies. Section III examines the medium-term fiscal outlook under different policy scenarios and discusses alternative policy options to restore fiscal balance. Section IV discusses recent developments in...