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Hong Kong Economy Profile 2014

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Economy - overviewHong 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 re-exports, 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'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, helped it to make an initial recovery more quickly 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 12% of total system deposits in Hong Kong by the end of 2013. 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 34.9 million in 2012, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.
GDP (purchasing power parity)$381.3 billion (2013 est.)
$370.6 billion (2012 est.)
$365.1 billion (2011 est.)
note: data are in 2013 US dollars
GDP (official exchange rate)$272.1 billion (2013 est.)
GDP - real growth rate2.9% (2013 est.)
1.5% (2012 est.)
4.8% (2011 est.)
GDP - per capita (PPP)$52,700 (2013 est.)
$51,600 (2012 est.)
$51,300 (2011 est.)
note: data are in 2013 US dollars
Gross national saving28.6% of GDP (2013 est.)
28.3% of GDP (2012 est.)
29.7% of GDP (2011 est.)
GDP - composition, by end usehousehold consumption: 66.1%
government consumption: 9.4%
investment in fixed capital: 23.7%
investment in inventories: 0.1%
exports of goods and services: 230%
imports of goods and services: -229%
(2013 est.)
GDP - composition by sectoragriculture: 0%
industry: 6.9%
services: 93% (2013 est.)
Population below poverty line19.6% (2012)
Labor force3.873 million (2013 est.)
Labor force - by occupationmanufacturing: 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 rate3.1% (2013 est.)
3.3% (2012 est.)
Unemployment, youth ages 15-24total: 9.3%
male: 10.9%
female: 7.8% (2012)
Household income or consumption by percentage sharelowest 10%: NA%
highest 10%: NA%
Distribution of family income - Gini index53.7 (2011)
53.3 (2007)
Budgetrevenues: $59.33 billion
expenditures: $54.23 billion (2013 est.)
Taxes and other revenues21.2% of GDP (2013 est.)
Budget surplus (+) or deficit (-)1.8% of GDP (2013 est.)
Public debt35.6% of GDP (2013 est.)
37.8% of GDP (2012 est.)
Inflation rate (consumer prices)4.4% (2013 est.)
4.1% (2012 est.)
Central bank discount rate0.5% (31 December 2013)
0.5% (31 December 2012)
Commercial bank prime lending rate5% (31 December 2013 est.)
5% (31 December 2012 est.)
Stock of narrow money$193.7 billion (31 December 2013 est.)
$176.6 billion (31 December 2012 est.)
Stock of broad money$1.289 trillion (31 December 2013 est.)
$1.148 trillion (31 December 2012 est.)
Stock of domestic credit$827.9 billion (31 December 2013 est.)
$714 billion (31 December 2012 est.)
Market value of publicly traded shares$3.082 trillion (31 December 2013 est.)
$2.814 trillion (31 December 2012)
$2.248 trillion (31 December 2011 est.)
Agriculture - productsfresh vegetables and fruit; poultry, pork; fish
Industriestextiles, clothing, tourism, banking, shipping, electronics, plastics, toys, watches, clocks
Industrial production growth rate0% (2013 est.)
Current Account Balance$5.614 billion (2013 est.)
$4.122 billion (2012 est.)
Exports$456.4 billion (2013 est.)
$440.3 billion (2012 est.)
Exports - commoditieselectrical machinery and appliances, textiles, apparel, footwear, watches and clocks, toys, plastics, precious stones, printed material
Exports - partnersChina 57.7%, US 8.9%, Japan 4.2% (2012 est.)
Imports$520.6 billion (2013 est.)
$501.6 billion (2012 est.)
Imports - commoditiesraw materials and semi-manufactures, consumer goods, capital goods, foodstuffs, fuel (most is reexported)
Imports - partnersChina 44.5%, Japan 8%, Taiwan 6.8%, South Korea 5.5%, US 4.9% (2012 est.)
Reserves of foreign exchange and gold$311.2 billion (31 December 2013 est.)
$317.3 billion (31 December 2012 est.)
Debt - external$1.159 trillion (31 December 2013 est.)
$1.024 trillion (31 December 2012 est.)
Stock of direct foreign investment - at home$1.502 trillion (31 December 2013 est.)
$1.237 trillion (31 December 2012 est.)
Stock of direct foreign investment - abroad$1.392 trillion (31 December 2013 est.)
$1.155 trillion (31 December 2012 est.)
Exchange ratesHong Kong dollars (HKD) per US dollar -
7.772 (2013 est.)
7.756 (2012 est.)
7.77 (2010 est.)
7.75 (2009)
7.751 (2008)
Fiscal year1 April - 31 March
Economy Comparison

Source: CIA World Factbook
Unless otherwise noted, information in this page is accurate as of August 23, 2014