Financial Secretary Paul Chan on Wednesday forecast that the city's economy would grow between 2.5 percent and 3.5 percent this year, after recording an annual growth rate of 3.5 percent in 2025. In his much-anticipated budget speech, Chan also predicted the city's economy would rise by three percent year on year each year in real terms between 2027 and 2030. "In the medium term, protectionism will persist in some major economies, while fragmentation of the global economy will continue," he said. "Nevertheless, the rise of the 'Global South' and the reshaping of the global trade and investment landscape will unlock new markets and new growth areas for Hong Kong," he added. The finance minister noted the SAR would also proactively align with the national 15th Five-Year Plan, while integrating with the Greater Bay Area to better serve the country's growth. He added the government was committed to expediting the development of the Northern Metropolis mega project, to further drive innovation and technology growth, while luring more talent to the city. On inflation, however, Chan warned consumer prices could be "moderately higher" than last year, with the key consumer price gauge rising by 1.8 percent. Meanwhile, underlying inflation, or the gauge netting out the effects of the government's one-off measures, would stand 1.7 percent this year, he added. That compared to the 1.1 percent underlying inflation rate registered last year. Edited by Tony Sabine