Financial Secretary Paul Chan on Sunday expressed confidence in Hong Kong’s economic outlook with the resumption of international events such as the Hong Kong Sevens but warned that the growth forecast for this year will be revised downwards.

Writing on his official blog, Chan said he expects the economy to weaken in the second half of the year, citing external factors such as rising global inflation, interest rate hikes in the US and the war in Ukraine.

In particular, he expressed concern about the pressure rising US interest rates will put on borrowing costs here, saying this will affect the price of assets, such as stocks and properties, and curb people's purchasing desire.

Chan noted that while GDP had improved between April and June quarter-on-quarter, it still shrank on a year-on-year basis.

But the finance minister said there are “more opportunities than challenges” ahead for Hong Kong, for example another round of consumption vouchers, which he said will boost the local economy.

He added that the resumption of international events such as the Hong Kong rugby sevens and the Global Financial Leaders’ Investment Summit, both to be held in November, will help to strengthen the city's position as an international financial centre.