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Hong Kong Economy 2018

SOURCE: 2018 CIA WORLD FACTBOOK AND OTHER SOURCES











Hong Kong Economy 2018
SOURCE: 2018 CIA WORLD FACTBOOK AND OTHER SOURCES


Page last updated on February 28, 2018

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 reexports, is about four times GDP. Hong Kong has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.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 aided a more rapid initial recovery than many observers anticipated, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy.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 9.4% of total system deposits in Hong Kong by the end of 2015. 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 total trade 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 47.3 million in 2014, outnumbering visitors from all other countries combined. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. In 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, which took effect in March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 2.6% in 2016, but slowed to 2.0% in 2017. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities. In 2017, Chief Executive Lam announced plans to increase government spending on research and development, education, and technological innovation with the aim of spurring continued economic growth through greater sector diversification.

GDP (purchasing power parity):
$453 billion (2017 est.) $437.5 billion (2016 est.) $428.8 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 44

GDP (official exchange rate):
$334.1 billion (2016 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
3.5% (2017 est.) 2% (2016 est.) 2.4% (2015 est.)
country comparison to the world: 90
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$61,000 (2017 est.) $59,400 (2016 est.) $58,700 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 18

Gross national saving:
24.9% of GDP (2017 est.) 26.4% of GDP (2016 est.) 24.9% of GDP (2015 est.)
country comparison to the world: 52
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 66.6%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 10%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 22.3%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0.7%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 191.9%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -191.3% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 0.1%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 7.2%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 92.7% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

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

Industrial production growth rate:
3% (2017 est.)
country comparison to the world: 102
[see also: Industrial production growth rate country ranks ]

Labor force:
3.965 million (2017 est.)
country comparison to the world: 95
[see also: Labor force country ranks ]

Labor force - by occupation:
manufacturing: 3.8%
construction: 2.8%
wholesale and retail trade, restaurants, and hotels: 53.3%
financing, insurance, and real estate: 12.5%
transport and communications: 10.1%
community and social services: 17.1%
note: above data exclude public sector (2013 est.)

Unemployment rate:
2.6% (2017 est.) 2.7% (2016 est.)
country comparison to the world: 25
[see also: Unemployment rate country ranks ]

Population below poverty line:
19.6% (2012 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: NA%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: NA%

Distribution of family income - Gini index:
53.7 (2011) 53.3 (2007)
country comparison to the world: 9
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $66.19 billion
[see also: Budget - revenues country ranks ]
expenditures: $62.86 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
19.8% of GDP (2017 est.)
country comparison to the world: 155
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
1% of GDP (2017 est.)
country comparison to the world: 15
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
43.6% of GDP (2017 est.) 44.8% of GDP (2016 est.)
country comparison to the world: 121
[see also: Public debt country ranks ]

Fiscal year:
1 April - 31 March

Inflation rate (consumer prices):
2% (2017 est.) 2.6% (2016 est.)
country comparison to the world: 92
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
0.5% (31 December 2013) 0.5% (31 December 2012)
country comparison to the world: 132
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
5.1% (31 December 2017 est.) 5% (31 December 2016 est.)
country comparison to the world: 144
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$310.3 billion (31 December 2017 est.) $285.5 billion (31 December 2016 est.)
country comparison to the world: 17
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$1.736 trillion (31 December 2017 est.) $1.613 trillion (31 December 2016 est.)
country comparison to the world: 10
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$719.2 billion (31 December 2017 est.) $676.5 billion (31 December 2016 est.)
country comparison to the world: 22
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$3.185 trillion (31 December 2015 est.) $3.233 trillion (31 December 2014 est.) $3.101 trillion (31 December 2013 est.)
country comparison to the world: 5
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$10.06 billion (2017 est.) $14.88 billion (2016 est.)
country comparison to the world: 21
[see also: Current account balance country ranks ]

Exports:
$540 billion (2017 est.) $502.5 billion (2016 est.)
country comparison to the world: 8
[see also: Exports country ranks ]

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

Exports - partners:
China 54.2%, US 9% (2016)

Imports:
$561.4 billion (2017 est.) $520.1 billion (2016 est.)
country comparison to the world: 8
[see also: Imports country ranks ]

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

Imports - partners:
China 47.8%, Singapore 6.5%, Japan 6.2%, US 5.2%, South Korea 4.9% (2016)

Reserves of foreign exchange and gold:
$398.3 billion (31 December 2017 est.) $386.3 billion (31 December 2016 est.)
country comparison to the world: 9
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$494.5 billion (31 December 2017 est.) $505.9 billion (31 December 2016 est.)
country comparison to the world: 23
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$1.901 trillion (31 December 2017 est.) $1.786 trillion (31 December 2016 est.)
country comparison to the world: 5
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$1.806 trillion (31 December 2017 est.) $1.723 trillion (31 December 2016 est.)
country comparison to the world: 5
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
Hong Kong dollars (HKD) per US dollar - 7.802 (2017 est.) 7.762 (2016 est.) 7.762 (2015 est.) 7.752 (2014 est.) 7.754 (2013 est.)


NOTE: 1) The information regarding Hong Kong on this page is re-published from the 2018 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Hong Kong Economy 2018 information contained here. All suggestions for corrections of any errors about Hong Kong Economy 2018 should be addressed to the CIA.
2) The rank that you see is the CIA reported rank, which may habe the following issues:
  a) The assign increasing rank number, alphabetically for countries with the same value of the ranked item, whereas we assign them the same rank.
  b) The CIA sometimes assignes counterintuitive ranks. For example, it assigns unemployment rates in increasing order, whereas we rank them in decreasing order






This page was last modified 28-Feb-18
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