A former deputy head of police, Lee reaffirmed the city’s economic growth forecast of 2% to 3% for 2025 and said authorities would reinforce its role as an international centre and a platform for mainland China enterprises to expand abroad.

Lee said his “ultimate objective” was to improve livelihoods, “with better housing for members of the public, higher income for workers, enhanced care for the elderly, and greater prospects for young people”.

Hong Kong’s small and open economy has felt the ripple effects of an economic slowdown in China and trade tensions between Beijing and Washington.

The policy address comes as Beijing pushes to bolster economic growth amid sluggish consumer demand.

Lee said the government would accelerate the development of the Northern Metropolis project, which aims to provide homes for around 2.5 million people and create a new business district near the border with the mainland.

Sandwiched between Shenzhen and Hong Kong, the Northern Metropolis was a focus of former leader Carrie Lam in 2021 when she announced plans to develop the area into an innovation and technology hub.

The development will be a stone’s throw from the Greater Bay Area, a Chinese government scheme to link Hong Kong, Macau and nine cities in the southern Chinese province of Guangdong.