Hong Kong Economy - 2005

Economy - overview:
Hong Kong has a free market, entrepot economy, highly dependent on international trade. Natural resources are limited, and food and raw materials must be imported. Gross imports and exports (i.e., including reexports to and from third countries) each exceed GDP in dollar value. Even before Hong Kong reverted to Chinese administration on 1 July 1997, it had extensive trade and investment ties with China. Hong Kong has been further integrating its economy with China because China's growing openness to the world economy has made manufacturing in China much more cost effective. Hong Kong's reexport business to and from China is a major driver of growth. Per capita GDP is comparable to that of the four big economies of Western Europe. GDP growth averaged a strong 5% from 1989 to 1997, but Hong Kong suffered two recessions in the past six years because of the Asian financial crisis in 1998 and the global downturn in 2001 and 2002. Although the Severe Acute Respiratory Syndrome (SARS) outbreak also battered Hong Kong's economy, a boom in tourism from the mainland because of China's easing of travel restrictions, a return of consumer confidence, and a solid rise in exports resulted in the resumption of strong growth in late 2003 and in 2004.

GDP:
purchasing power parity - $234.5 billion (2004 est.)

GDP - real growth rate:
7.9% (2004 est.)

GDP - per capita:
purchasing power parity - $34,200 (2004 est.)

GDP - composition by sector:
agriculture: 0.1%
industry: 11.3%
services: 88.6% (2004 est.)

Labor force:
3.54 million (October 2004 est.)

Labor force - by occupation:
manufacturing 7.5%, construction 2.9%, wholesale and retail trade, restaurants, and hotels 43.7%, financing, insurance, and real estate 19.2%, transport and communications 7.9%, community and social services 18.5%
note: above data exclude public sector (2004 est.)

Unemployment rate:
6.7% (2004 est.)

Population below poverty line:
NA

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

Inflation rate (consumer prices):
-0.3% (2004 est.)

Investment (gross fixed):
22.7% of GDP (2004 est.)

Budget:
revenues: $26.6 billion
expenditures: $31.7 billion, including capital expenditures of $5.9 billion (2004 est.)

Public debt:
2.1% of GDP (2004 est.)

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

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

Industrial production growth rate:
1% (2004 est.)

Electricity - production:
35.51 billion kWh (2003)

Electricity - consumption:
38.45 billion kWh (2003)

Electricity - exports:
3 billion kWh (2003)

Electricity - imports:
10.4 billion kWh (2003)

Oil - production:
0 bbl/day (2003 est.)

Oil - consumption:
257,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Natural gas - production:
NA

Natural gas - consumption:
680.9 million cu m (2001 est.)

Natural gas - exports:
0 cu m (2001 est.)

Natural gas - imports:
680.9 million cu m (2001 est.)

Current account balance:
$14.85 billion (2004 est.)

Exports:
$268.1 billion f.o.b., including reexports (2004 est.)

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

Exports - partners:
China 44%, US 17%, Japan 5.3% (2004)

Imports:
$275.9 billion (2004 est.)

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

Imports - partners:
China 43.5%, Japan 12.1%, Taiwan 7.3%, US 5.3%, Singapore 5.3%, South Korea 4.8% (2004)

Reserves of foreign exchange and gold:
$123.6 billion (31 December 2004 est.)

Debt - external:
$66.94 billion (2004 est.)

Currency (code):
Hong Kong dollar (HKD)

Exchange rates:
Hong Kong dollars per US dollar - 7.788 (2004), 7.7868 (2003), 7.7989 (2002), 7.7988 (2001), 7.7912 (2000)