Hong Kong Economy 2007

Economy - overview:
Hong Kong has a free market economy highly dependent on international trade. The territory has become more closely linked to mainland China over the past few years. Even before Hong Kong reverted to Chinese administration on 1 July 1997, it had extensive trade and investment ties with China. Hong Kong's service industry over the past decade has grown rapidly as its manufacturing industry has moved to the mainland. Hong Kong also has stepped up its efforts to gain approval to offer more mainland financial services in a bid to remain competitive with China's growing financial centers. Hong Kong's natural resources are limited, and food and raw materials must be imported. Gross imports and exports (including reexports to and from third countries) each exceed GDP in dollar value. Per capita GDP exceeds that of the four big economies of Western Europe. GDP growth averaged a strong 5% from 1989 to 2006, but Hong Kong suffered two recessions in the past eight years because of the Asian financial crisis in 1997-98 and the global downturn in 2001-02. Although the Severe Acute Respiratory Syndrome (SARS) outbreak in 2003 also battered Hong Kong's economy, a solid rise in exports, a boom in tourism from the mainland because of China's easing of travel restrictions, and a return of consumer confidence resulted in the resumption of strong growth from late 2003 through 2006. Moreover, several large initial public offerings of Chinese companies on the Hong Kong stock exchange since late 2005 have helped to boost Hong Kong's status as a financial hub and have contributed to the improved performance of the market in late 2006.

GDP (purchasing power parity):
$259.1 billion (2006 est.)

GDP (official exchange rate):
$188.8 billion (2006 est.)

GDP - real growth rate:
6.9% (2006 est.)

GDP - per capita (PPP):
$37,300 (2006 est.)

GDP - composition by sector:
agriculture: 0.1%
industry: 8.6%
services: 91.3% (2006 est.)

Labor force:
3.583 million (2006 est.)

Labor force - by occupation:
manufacturing 7.5%, construction 2.9%, wholesale and retail trade, restaurants, and hotels 43.9%, financing, insurance, and real estate 19.6%, transport and communications 7.1%, community and social services 18.8%
note: above data exclude public sector (2005 est.)

Unemployment rate:
4.9% (2006 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:
52.3 (2001)

Inflation rate (consumer prices):
2% (2006 est.)

Investment (gross fixed):
21.8% of GDP (2006 est.)

Budget:
revenues: $35.18 billion
expenditures: $32.18 billion (2006 est.)

Public debt:
13.3% of GDP (2006 est.)

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

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

Industrial production growth rate:
4% (2006 est.)

Electricity - production:
36.14 billion kWh (2005)

Electricity - consumption:
37.74 billion kWh (2005)

Electricity - exports:
4.498 billion kWh (2005)

Electricity - imports:
11 billion kWh (2005)

Oil - production:
0 bbl/day (2005 est.)

Oil - consumption:
285,000 bbl/day (2005 est.)

Oil - exports:
26,090 bbl/day (2004)

Oil - imports:
344,200 bbl/day (2004)

Oil - proved reserves:
0 bbl (1 January 2006)

Natural gas - production:
0 cu m (2005 est.)

Natural gas - consumption:
2.944 billion cu m (2005 est.)

Natural gas - exports:
0 cu m (2005 est.)

Natural gas - imports:
2.944 billion cu m (2005)

Current account balance:
$20.59 billion (2006 est.)

Exports:
$317.6 billion f.o.b., including reexports (2006 est.)

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

Exports - partners:
China 47%, US 15.1%, Japan 4.9% (2006)

Imports:
$331.7 billion (2006 est.)

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

Imports - partners:
China 45.9%, Japan 10.3%, Taiwan 7.5%, Singapore 6.3%, US 4.8%, South Korea 4.6% (2006)

Reserves of foreign exchange and gold:
$133.2 billion (2006 est.)

Debt - external:
$72.79 billion (2006 est.)

Stock of direct foreign investment - at home:
$769.1 billion (2006 est.)

Stock of direct foreign investment - abroad:
$689 billion (2006 est.)

Market value of publicly traded shares:
$1.006 trillion (2005)

Currency (code):
Hong Kong dollar (HKD)

Exchange rates:
Hong Kong dollars per US dollar - 7.7678 (2006), 7.7773 (2005), 7.788 (2004), 7.7868 (2003), 7.7989 (2002)