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The Economy of Hong Kong

Chinese/Hong Kong Economy

Hong Kong's map

Economy - overview: Hong Kong has a free market economy highly dependent on international trade and finance, which has left it heavily exposed to the global economic slowdown that began in 2008. The total value of goods and services trade, including the sizable share of reexports, was equivalent to 404% of GDP in 2007. The territory has become increasingly integrated with mainland China over the past few years through trade, tourism, and financial links. The mainland has long been Hong Kong's largest trading partner, accounting for nearly 49% of Hong Kong's exports trade by value in 2008. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 16.9 million in 2008, when they outnumbered visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. More than one-third of the firms listed on the Hong Kong Stock Exchange are now mainland Chinese companies, and they account for 60% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly and now accounts for more than 92% of the territory's GDP. Hong Kong's natural resources are limited, and food and raw materials must be imported. GDP growth averaged a strong 5% from 1989 to 2007, but the global financial crisis caused a sharp slowdown in the second half of 2008, pushing the territory into recession. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

GDP:

GDP - real growth rate: 2.8% (2008 est.) 6.4% (2007 est.) 7% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 0% industry: 7.9% services: 92% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

Distribution of family income - Gini index: 53.3 (2007)

Inflation rate (consumer prices):

Labor force: 3.67 million (2008 est.)

Labor force - by occupation: manufacturing 6.1%, construction 1.9%, wholesale and retail trade, restaurants, and hotels 42.9%, financing, insurance, and real estate 21.4%, transport and communications 7.9%, community and social services 19.7% note: above data exclude public sector (2008 est.)

Unemployment rate: 4.1% (December 2008 est.)

Budget: revenues: $36.62 billion expenditures: $38.89 billion (2008 est.)

Industries: textiles, clothing, tourism, banking, shipping, electronics, plastics, toys, watches, clocks

Industrial production growth rate: 0% (2008 est.)

Electricity - production: 38.4 billion kWh (2008 est.)

Electricity - production by source:

Electricity - consumption: 44.6 billion kWh (2008 est.)

Electricity - exports: 3.7 billion kWh (2008 est.)

Electricity - imports: 11 billion kWh (2008 est.)

Oil - production: 0 bbl/day (2008)

Oil - consumption: 315,400 bbl/day (2008 est.)

Oil - exports: 19,480 bbl/day (2008)

Oil - imports: 334,900 bbl/day (2008)

Oil - proved reserves: 0 bbl (1 January 2008)

Natural gas - production: 0 cu m (2008)

Natural gas - consumption: 3.08 billion cu m (2008 est.)

Natural gas - exports: 0 cu m (2008)

Natural gas - imports: 3.08 billion cu m (2008 est.)

Natural gas - proved reserves: 0 cu m (1 January 2006 est.)

Agriculture - products: fresh vegetables; poultry, pork; fish

Exports: $362.1 billion f.o.b., including reexports (2008)

Exports - commodities: electrical machinery and appliances, textiles, apparel, footwear, watches and clocks, toys, plastics, precious stones, printed material

Exports - partners: China 48.7%, US 13.7%, Japan 4.5% (2007)

Imports: $387.9 billion (2008 est.)

Imports - commodities: raw materials and semi-manufactures, consumer goods, capital goods, foodstuffs, fuel (most is re-exported)

Imports - partners: China 46.3%, Japan 10%, Taiwan 7.1%, Singapore 6.8%, US 4.9%, South Korea 4.2% (2007)

Debt - external: $78.84 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Hong Kong dollars (HKD) per US dollar - 7.751 (2008), 7.802 (2007), 7.7678 (2006), 7.7773 (2005), 7.788 (2004)

Fiscal year: