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Hong Kong Economy 2019

SOURCE: 2019 CIA WORLD FACTBOOK AND OTHER SOURCES











Hong Kong Economy 2019
SOURCE: 2019 CIA WORLD FACTBOOK AND OTHER SOURCES


Page last updated on February 08, 2019

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, 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.

Excess liquidity, low interest rates and a tight housing supply have caused Hong Kong property prices to rise rapidly. The lower and middle-income segments of the population increasingly find housing unaffordable.

Hong Kong's open economy has left it exposed to the global economic situation. Its continued reliance on foreign trade and investment makes it vulnerable to renewed global financial market volatility or a slowdown in the global economy.

Mainland China 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 surged from 4.5 million in 2001 to 47.3 million in 2014, outnumbering visitors from all other countries combined. After peaking in 2014, overall tourist arrivals dropped 2.5% in 2015 and 4.5% in 2016. The tourism sector rebounded in 2017, with visitor arrivals rising 3.2% to 58.47 million. Travelers from Mainland China totaled 44.45 million, accounting for 76% of the total.

The Hong Kong Government is promoting the Special Administrative Region (SAR) as the preferred business hub for 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, RMB trade settlement is allowed, and investment schemes such as the Renminbi Qualified Foreign Institutional Investor (RQFII) Program was first launched in Hong Kong. Offshore RMB activities experienced a setback, however, after the People’s Bank of China changed the way it set the central parity rate in August 2015. RMB deposits in Hong Kong fell from 1.0 trillion RMB at the end of 2014 to 559 billion RMB at the end of 2017, while RMB trade settlement handled by banks in Hong Kong also shrank from 6.8 trillion RMB in 2015 to 3.9 trillion RMB in 2017.

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 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 66% 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 (CEPA), 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. On the basis of the Guangdong Agreement, the Agreement on Trade in Services signed in November 2015 further enhanced liberalization, including extending the implementation of the majority of Guangdong pilot liberalization measures to the whole Mainland, reducing the restrictive measures in the negative list, and adding measures in the positive lists for cross-border services as well as cultural and telecommunications services. In June 2017, the Investment Agreement and the Agreement on Economic and Technical Cooperation (Ecotech Agreement) were signed under the framework of CEPA.

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 Hong Kong- Shenzhen Stock Connect the Mutual Recognition of Funds, and the Bond Connect scheme are all important steps towards opening up the Mainland’s capital markets and have reinforced Hong Kong’s role as China’s leading offshore RMB market. Additional connect schemes such as ETF Connect (for exchange-traded fund products) are also under exploration by Hong Kong authorities. In 2017, Chief Executive Carrie 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):
$455.9 billion (2017 est.)
$439.2 billion (2016 est.)
$429.9 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 43
[see also: GDP country ranks ]

GDP (official exchange rate):
$341.4 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
3.8% (2017 est.)
2.2% (2016 est.)
2.4% (2015 est.)
country comparison to the world: 87
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$61,500 (2017 est.)
$59,500 (2016 est.)
$58,800 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 18
[see also: GDP - per capita country ranks ]

Gross national saving:
26.6% of GDP (2017 est.)
25.5% of GDP (2016 est.)
24.9% of GDP (2015 est.)
country comparison to the world: 47
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 67% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 9.9% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 21.8% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0.4% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 188% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -187.1% (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% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 7.6% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 92.3% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

Industries:
trading and logistics, financial services, professional services, tourism, cultural and creative, clothing and textiles, shipping, electronics, toys, clocks and watches

Industrial production growth rate:
1.7% (2017 est.)
country comparison to the world: 139
[see also: Industrial production growth rate country ranks ]

Labor force:
3.965 million (2017 est.)
country comparison to the world: 94
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 3.8% (2013 est.)
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 2% (2016 est.)
[see also: Labor force - by occupation - industry country ranks ]
services: 54.5% (2016 est.)
[see also: Labor force - by occupation - services country ranks ]
industry and services: 12.5% (2013 est.)
agriculture/fishing/forestry/mining: 10.1% (2013)
manufacturing: 17.1% (2013 est.)
note: above data exclude public sector

Unemployment rate:
3.1% (2017 est.)
3.4% (2016 est.)
country comparison to the world: 38
[see also: Unemployment rate country ranks ]

Population below poverty line:
19.9% (2016 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 1.8% NA
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 38.1% NA (2016)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
53.9 (2016)
53.7 (2011 est.)
country comparison to the world: 9
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 79.34 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 61.64 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
23.2% (of GDP) (2017 est.)
country comparison to the world: 128
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
5.2% (of GDP) (2017 est.)
country comparison to the world: 6
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
0.1% of GDP (2017 est.)
0.1% of GDP (2016 est.)
country comparison to the world: 208
[see also: Public debt country ranks ]

Fiscal year:
1 April - 31 March

Inflation rate (consumer prices):
1.5% (2017 est.)
2.4% (2016 est.)
country comparison to the world: 81
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
1.75% (31 December 2017)
1% (31 December 2016)
country comparison to the world: 123
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
5% (31 December 2017 est.)
5% (31 December 2016 est.)
country comparison to the world: 150
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$311.1 billion (31 December 2017 est.)
$285.5 billion (31 December 2016 est.)
country comparison to the world: 16
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$311.1 billion (31 December 2017 est.)
$285.5 billion (31 December 2016 est.)
country comparison to the world: 16
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$825.3 billion (31 December 2017 est.)
$676.5 billion (31 December 2016 est.)
country comparison to the world: 19
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$4.359 trillion (31 December 2017 est.)
$3.175 trillion (31 December 2016 est.)
$3.165 trillion (31 December 2015 est.)
country comparison to the world: 4
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$14.75 billion (2017 est.)
$12.71 billion (2016 est.)
country comparison to the world: 20
[see also: Current account balance country ranks ]

Exports:
$537.8 billion (2017 est.)
$460 billion (2016 est.)
country comparison to the world: 8
[see also: Exports country ranks ]

Exports - partners:
China 54.1%, US 7.7% (2017)

Exports - commodities:
electrical machinery and appliances, textiles, apparel, watches and clocks, toys, "jewelry, goldsmiths' and silversmiths' wares, and other articles of precious or semi-precious materials"; Hong Kong plays an important role as entrepot to the Chinese mainland; in 2017, 58% of Hong Kong’s re-exports originated in mainland China, and 54% were destined for the Chinese mainland

Imports:
$561.8 billion (2017 est.)
$518.2 billion (2016 est.)
country comparison to the world: 7
[see also: Imports country ranks ]

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

Imports - partners:
China 44.6%, Singapore 6.4%, Japan 6.1%, South Korea 5.5%, US 5.2% (2017)

Reserves of foreign exchange and gold:
$431.4 billion (31 December 2017 est.)
$386.2 billion (31 December 2016 est.)
country comparison to the world: 7
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$633.6 billion (31 December 2017 est.)
$1.349 trillion (31 December 2016 est.)
country comparison to the world: 18
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$2.2 trillion (31 December 2017 est.)
$1.616 trillion (31 December 2016 est.)
country comparison to the world: 3
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$2.036 trillion (31 December 2017 est.)
$1.538 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 -
7.82 (2017 est.)
7.76 (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 2019 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Hong Kong Economy 2019 information contained here. All suggestions for corrections of any errors about Hong Kong Economy 2019 should be addressed to the CIA.
2) The rank that you see is the CIA reported rank, which may habe the following issues:
  a) They 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 08-Feb-19
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