Famous Chinese Shopping City Books

Economy of Hong Kong Wikipedia

Life in Hong Kong
The economy of Hong Kong has often been cited by people such as Milton Friedman and the Cato Institute as an example of the benefits of laissez-faire capitalism. However, many analysts believe that this characterization of the Hong Kong economy is not entirely accurate, as the Hong Kong government, both under British and Chinese rule, have often intervened quite actively in the economy, for example by determining the amount of land to be sold and in quite actively maintaining the peg to the U.S. dollar.

After a slump caused by the regionwide Asian financial crisis that began in 1997, Hong Kong's economy has been temporarily on the rebound. Real Gross domestic product|GDP growth was 3.1% in 1999 and reached double digits in the first half of 2000. After peaking at 6.3% in 1999, the unemployment rate eased back to 4.8% in mid-2000.

In August 1998, the government intervened in the stock, futures, and currency markets to fend off "manipulators." The banking sector remains solid, and the government is committed to the U.S.-Hong Kong dollar link.

The economy of Hong Kong has suffered from the SARS outbreak in early 2003. As of May 2003, the unemployment rate was 8.2%.

Hong Kong's magnificent harbor has facilitated rapid development of foreign trade. Hong Kong's principal trading partners include Mainland China, the United States, Japan, Taiwan, Germany, Singapore, and South Korea.

Hong Kong enjoyed economic growth in the past because of its strong manufacturing sector, but in recent years the service sector has surpassed it in importance and now accounts for 85% of GDP. The major components of Hong Kong's service trade are shipping, civil aviation, tourism, and various financial services. Hong Kong has one of the world's most sophisticated telecommunications and information technology infrastructures and functions as a major regional and international financial and commercial center.

GDP purchasing power parity - $198.5 billion (2002 est.)
<br>GDP - real growth rate 2.3% (2002 est.)
<br>GDP - per capita purchasing power parity - $27,200 (2002 est.)
<br>GDP - composition by sector
<br>agriculture 0.1%
<br>industry 13.4%
<br>services 86.5% (2001 est.)

Population below poverty line NA%
<br>Household income or consumption by percentage share
<br>lowest 10% NA%
<br>highest 10% NA%

Inflation rate (consumer prices) -1.6% (2001 est.)

Labor force 3.44 million (2001 est.)
<br>Labor force - by occupation wholesale and retail trade, restaurants, and hotels 31%, financing, insurance, and real estate 13%, community and social services 11%, manufacturing 7%, transport and communications 6%, construction 2%, other 30% (2001 est.)
<br>Unemployment rate 5.2% (2001 est.)

Budget
<br>revenues $22.9 billion
<br>expenditures $24.6 billion, including capital expenditures of $465 million (FY00/01)

Last Modified:   2005-04-13