Hong Kong Economy Profile 2009

Economy - overview

Hong Kong has a free market economy highly dependent on international trade and finance, which has left it heavily exposed to the global economic slowdown that began in 2008. The total value of goods and services trade, including the sizable share of reexports, was equivalent to 404% of GDP in 2007. The territory has become increasingly integrated with mainland China over the past few years through trade, tourism, and financial links. The mainland has long been Hong Kong's largest trading partner, accounting for nearly 49% of Hong Kong's exports trade by value in 2008. 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 16.9 million in 2008, when they outnumbered visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. More than one-third of the firms listed on the Hong Kong Stock Exchange are now mainland Chinese companies. They account for 60% 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 and now accounts for more than 90% of the territory's GDP. Hong Kong's natural resources are limited, and food and raw materials must be imported. GDP growth averaged a strong 5% from 1989 to 2007, but the global financial crisis caused a sharp slowdown in the second half of 2008, pushing the territory into recession. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

GDP (purchasing power parity)

$306.6 billion (2008 est.)
$299.4 billion (2007 est.)
$281.4 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$215.6 billion (2008 est.)

GDP - real growth rate

2.4% (2008 est.)
6.4% (2007 est.)
7% (2006 est.)

GDP - per capita (PPP)

$43,700 (2008 est.)
$42,900 (2007 est.)
$40,500 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 0%
industry: 7.4%
services: 92.7% (2008 est.)

Population below poverty line

NA%

Labor force

3.66 million (2008 est.)

Labor force - by occupation

manufacturing 6.1%, construction 1.9%, wholesale and retail trade, restaurants, and hotels 42.9%, financing, insurance, and real estate 21.4%, transport and communications 7.9%, community and social services 19.7%
note: above data exclude public sector (2008 est.)

Unemployment rate

4.1% (December 2008 est.)
4% (2007 est.)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Distribution of family income - Gini index

53.3 (2007)

Investment (gross fixed)

19.7% of GDP (2008 est.)

Budget

revenues: $39.04 billion
expenditures: $39.76 billion (2008 est.)

Public debt

13.9% of GDP (2008 est.)
2.1% of GDP (2004 est.)

Inflation rate (consumer prices)

4.3% (2008 est.)
2% (2007 est.)

Central bank discount rate

0.5% (31 December 2008)
5.75% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)

Stock of money

$63.03 billion (31 December 2008)
$51.25 billion (31 December 2007)

Stock of quasi money

$352.4 billion (31 December 2008)
$578.1 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$259.7 billion (31 December 2007)

Industries

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

Industrial production growth rate

-1.2% (2008 est.)

Electricity - production

38.4 billion kWh (2008 est.)

Electricity - production by source

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

44.6 billion kWh (2008 est.)

Electricity - exports

3.7 billion kWh (2008 est.)

Electricity - imports

11 billion kWh (2008 est.)

Oil - production

0 bbl/day (2008)

Oil - consumption

315,400 bbl/day (2008 est.)

Oil - imports

334,900 bbl/day (2008)

Oil - exports

19,480 bbl/day (2008)

Oil - proved reserves

0 bbl (1 January 2008)

Natural gas - production

0 cu m (2008)

Natural gas - consumption

3.08 billion cu m (2008 est.)

Natural gas - exports

0 cu m (2008)

Natural gas - imports

3.08 billion cu m (2008 est.)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

$30.52 billion (2008 est.)
$25.53 billion (2007 est.)

Agriculture - products

fresh vegetables; poultry, pork; fish

Exports

$365.2 billion (2008 est.)
$345.9 billion (2007 est.)

Exports - commodities

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

Exports - partners

China 48.5%, US 12.8%, Japan 4.3% (2008)

Imports

$388.4 billion (2008 est.)
$365.6 billion (2007 est.)

Imports - commodities

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

Imports - partners

China 46.6%, Japan 9.8%, Singapore 6.4%, US 5% (2008)

Reserves of foreign exchange and gold

$182.5 billion (31 December 2008 est.)
$152.7 billion (31 December 2007 est.)

Debt - external

$659.9 billion (31 December 2008)
$711.1 billion (31 December 2007)

Stock of direct foreign investment - at home

$1.241 trillion (31 December 2008 est.)
$1.178 trillion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$1.071 trillion (31 December 2008 est.)
$1.011 trillion (31 December 2007 est.)

Market value of publicly traded shares

$1.32 trillion (31 December 2008)
$1.163 trillion (31 December 2007)
$895.2 billion (31 December 2006 est.)

Economic aid - recipient

$6.95 million (2004)

Currency (code)

HKD

Currency (code)

Hong Kong dollar (HKD)

Exchange rates

Hong Kong dollars (HKD) per US dollar - 7.751 (2008), 7.802 (2007), 7.7678 (2006), 7.7773 (2005), 7.788 (2004)

Fiscal year

1 April - 31 March