Hong Kong remains stable as oil prices surge amid Middle East turmoil: Paul Chan
Finance chief says city’s service-led economy helps buffer short-term impact of conflict, while vowing to monitor energy volatility
Chan acknowledged that the conflict in the Middle East, unstable international geopolitics and the sharp rise in fuel prices were weighing heavily on the global economic outlook.
“In the short term, the direct impact on Hong Kong is limited, as our economy is primarily service-driven and our goods exports to the Middle East account for a relatively low proportion [of total trade],” Chan wrote on his weekly blog.
“In the medium term, should the conflict persist, it will inevitably impact the global macroeconomy, interest rate trajectories and capital flows.”
The current volatility stems from February 28, when the United States and Israel launched missiles at Iran, triggering counter-attacks and sending global oil prices soaring.