Health authorities reported 24 deaths, compared with Tuesday's 32 deaths and 6,211 new cases.
With the city's testing, treatment and isolation capacity already stretched to the maximum, University of Hong Kong researchers predicted new infections could peak at 180,000 a day next month.
"We are really at the limit," Lau Ka-hin, chief manager for quality and standards of the Hospital Authority, an oversight department, told reporters.
Earlier on Wednesday, Finance Secretary Paul Chan unveiled tax breaks, handouts and subsidies to small businesses and residents, in a 2022/23 budget that aimed to mitigate the impact of curbs that will last at least until April 20.