S&P Global Ratings affirmed its AA+ long-term and A-1+ short-term issuer credit ratings on Hong Kong, maintaining a Stable outlook.

The rating reflected the forecast that Hong Kong's economic growth will align with other high-income economies for at least the next two years, despite uncertainties in the international economic environment.

The rating agency estimated that Hong Kong's government deficit will remain on average below 4% of GDP over the next 2-3 years, even with heightened infrastructure spending.

Despite the government's fiscal consolidation plans, the pace of fiscal improvement was expected to be slow, largely due to weak land sales and high infrastructure expenditures, which will deplete fiscal buffers and undermine support for the current credit rating over the next 1-2 years, S&P Global Ratings opined.