Economy of Hong Kong

Economy - overview
Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. 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 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
GDP (purchasing power parity)
$355.6 billion (2011 est.)
$316.5 billion (2009 est.)
data are in 2011 US dollars
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GDP (official exchange rate)
$243.3 billion (2011 est.)
GDP - real growth rate
5% (2011 est.)
-2.6% (2009 est.)
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GDP - per capita (PPP)
$49,800 (2011 est.)
$44,900 (2009 est.)
data are in 2011 US dollars
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GDP - composition by sector
agriculture:
0.1%
industry:
6.8%
services:
93.2% (2011 est.)
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Labor force
3.703 million (2011 est.)
rank:
93
Labor force - by occupation
manufacturing:
4.3%
construction:
2.4%
wholesale and retail trade, restaurants, and hotels:
41.4%
financing, insurance, and real estate:
12.5%
transport and communications:
6.3%
community and social services:
16.8%
above data exclude public sector (2011 est.)
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Unemployment rate
3.4% (2011 est.)
4.3% (2010 est.)
Population below poverty line
NA%
Household income or consumption by percentage share
lowest 10%:
NA%
highest 10%:
NA%
Distribution of family income - Gini index
53.3 (2007)
rank:
13
Investment (gross fixed)
21.9% of GDP (2011 est.)
rank:
68
Budget
revenues:
$55.53 billion
expenditures:
$46.97 billion (2011 est.)
Taxes and other revenues
22.8% of GDP (2011 est.)
rank:
137
Budget surplus (+) or deficit (-)
3.5% of GDP (2011 est.)
rank:
21
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Public debt
30.1% of GDP (2011 est.)
42.6% of GDP (2010 est.)
Inflation rate (consumer prices)
5.3% (2011 est.)
2.3% (2010 est.)
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Central bank discount rate
0.5% (31 December 2011)
0.5% (31 December 2010)
Commercial bank prime lending rate
5% (31 December 2011 est.)
5% (31 December 2010 est.)
Stock of narrow money
$143.8 billion (31 December 2011 est.)
$130.4 billion (31 December 2010)
Stock of broad money
$1.028 trillion (31 December 2011 est.)
$917.5 billion (31 December 2010)
Stock of domestic credit
$540.7 billion (31 December 2011 est.)
$463.7 billion (31 December 2010 est.)
Market value of publicly traded shares
$2.24 trillion (31 December 2011)
$2.292 trillion (31 December 2009 est.)
Agriculture - products
fresh vegetables; poultry, pork; fish
Industries
textiles, clothing, tourism, banking, shipping, electronics, plastics, toys, watches, clocks
Industrial production growth rate
0.8% (2011 est.)
rank:
141
Electricity - production
41.22 billion kWh (2011 est.)
rank:
54
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Electricity - consumption
43.14 billion kWh (2011 est.)
rank:
49
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Electricity - exports
2.75 billion kWh (2011 est.)
Electricity - imports
10.75 billion kWh (2011 est.)
Oil - production
0 bbl/day (2011 est.)
rank:
183
Oil - consumption
303,800 bbl/day (2011 est.)
rank:
41
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Oil - exports
18,750 bbl/day (2011 est.)
rank:
88
Oil - imports
375,000 bbl/day (2011)
rank:
28
Oil - proved reserves
0 bbl (1 January 2012 est.)
rank:
143
Natural gas - production
0 cu m (2011 est.)
rank:
194
Natural gas - consumption
3.46 billion cu m (2011 est.)
rank:
67
Natural gas - exports
0 cu m (2011 est.)
rank:
114
Natural gas - imports
3.46 billion cu m (2011 est.)
rank:
40
Natural gas - proved reserves
0 cu m (1 January 2011 est.)
rank:
188
Current account balance
$9.42 billion (2011 est.)
$12.39 billion (2010 est.)
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Exports
$427.9 billion (2011 est.)
$394 billion (2010 est.)
Exports - commodities
electrical machinery and appliances, textiles, apparel, footwear, watches and clocks, toys, plastics, precious stones, printed material
Exports - partners
China 52.4%, US 9.9%, Japan 4% (2011 est.)
Imports
$482.6 billion (2011 est.)
$437 billion (2010 est.)
Imports - commodities
raw materials and semi-manufactures, consumer goods, capital goods, foodstuffs, fuel (most is reexported)
Imports - partners
China 44.9%, Japan 8.9%, Taiwan 7.5%, US 4.9% (2011 est.)
Reserves of foreign exchange and gold
$285.4 billion (31 December 2011 est.)
$268.7 billion (31 December 2010 est.)
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Debt - external
$903.2 billion (30 June 2011 est.)
$750.8 billion (31 December 2010 est.)
Stock of direct foreign investment - at home
$1.155 trillion (31 December 2011 est.)
$1.09 trillion (31 December 2010 est.)
Stock of direct foreign investment - abroad
$997.1 billion (31 December 2011 est.)
$936 billion (31 December 2010 est.)
Exchange rates
7.802 (2007)
Fiscal year
1 April - 31 March
Data source 1: All Above textual data, maps and flags were extracted from The World Factbook which was prepared by the Central Intelligence Agency and made available on the following link: The World Factbook. Lebanese Economy Forum is not sponsered or affiliated, in any way, by the US Central Intelligence Agency
Data source 2: Plots and Charts are constructed using the world bank public data catalog which can be viewed by visiting the following link: World Bank Data Catalog. Lebanese Economy Forum is not sponsored or affiliated, in any way, by the worldbank

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