+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

PRINTER FRIENDLY

Country Risk Service Hong Kong

  • ID: 2134379
  • Country Profile
  • Region: Hong Kong
  • 26 Pages
  • The Economist Intelligence Unit
1 of 3
Hong Kong remains in the AA band for sovereign risk. The government's forecasts, as presented in the fiscal year 2019/20 (April-March) budget address in February 2019, project fiscal surpluses into the medium term. The Economist Intelligence Unit's forecasts for the fiscal surplus in 2018/19-2019/20 are broadly in line with those of the government.

Currency risk remains in the A rating band. We anticipate that the Hong Kong dollar will intermittently reach the weak edge of its permitted trading band in 2019, prompting intervention by the authorities to support its value. However, the government's will and capacity to defend the local currency's peg to the US dollar will remain strong in the forecast period.

Banking sector risk remains in the A rating band. The biggest risks to bank balance sheets in 2019-20 will stem from exposure to China's slowing economy and to the local property market. However, these risks at present seem well contained, and the danger of sector-wide instability remains low.
Note: Product cover images may vary from those shown
2 of 3
Country Risk Service Hong Kong

Risk assessment
Sovereign risk
Currency risk
Banking sector risk
Political risk
Economic structure risk

Definitions
Sovereign risk
Currency risk
Banking sector risk
Political risk
Economic structure risk
Overall country risk

Sovereign risk
Current assessment
Positive factors
Negative factors
Rating outlook

Currency risk
Current assessment
Positive factors
Negative factors
Rating outlook
Foreign-exchange regime

Banking sector risk
Current assessment
Positive factors
Negative factors
Rating outlook

Generic risks
Political risk assessment
Economic structure risk assessment

Country risk
Overall country risk

Central scenario for 2019-23: Political stability

Central scenario for 2019-23: Election watch

Central scenario for 2019-23: International relations

Central scenario for 2019-23: Policy trends

Central scenario for 2019-23: Fiscal policy

Central scenario for 2019-23: Monetary policy

Central scenario for 2019-23: Economic growth

Central scenario for 2019-23: Inflation

Central scenario for 2019-23: Exchange rates

Central scenario for 2019-23: External sector

Central scenario for 2019-23: External financing requirement

Central scenario for 2019-23: External debt

Key risk indicators

Ratings summary

Quarterly indicators

International assumptions summary

Economic structure

Public finances

Exchange rates, interest rates and prices

Financial sector

Current account

International liquidity

Foreign payment and liquidity indicators

External trade

External financing requirement

External debt stock

External debt service
Note: Product cover images may vary from those shown
3 of 3

Loading
LOADING...

4 of 3

Loading
LOADING...

Adroll
adroll