Hong Kong aims to cut spending by slashing 10,000 civil service jobs in an effort to rein in a rising deficit, and plans a big AI push as it navigates headwinds from global economic uncertainty, geopolitical tensions and a weak property market.

Hong Kong will cut thousands of civil service jobs and boost spending in artificial intelligence as it seeks to tackle an increasing deficit.

Hong Kong's finance chief unveiled a "belt-tightening" budget on Wednesday (Feb 26) that aimed to end the city's string of record-high deficits by 2028 while seeking growth in areas such as artificial intelligence.