(Bloomberg) -- Hong Kong Financial Secretary Paul Chan said he is optimistic about the city’s economic prospects for this year and expects the local real estate market to rebound after the China border reopens. 

Hong Kong’s exports, tourism and local service industry are all expected to rebound on China’s border reopening, and consumption in the first quarter is likely to rise significantly from a year earlier, Chan wrote in his blog on Sunday.

The city’s property has been hit by rising global interest rates and economic weakness, with the transaction volume in the first 11 months of last year plunging 38%, according to the financial secretary. While he expected the US Federal Reserve’s tightening cycle and Hong Kong interest rates to continue to climb, Chan said the border reopening with China could lift general sentiment in the real estate market.

Read more: China Reopening May Boost Hong Kong’s GDP by 7.6%, Goldman Says

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