Page last updated on February 20, 2013
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 re-exports, is about four times GDP. 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, it again faces a possible slowdown as exports to the Euro zone and US slump. 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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. 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 exports 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Growth slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011, but the tempo slowed in 2012. 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.
GDP (purchasing power parity):
$363.7 billion (2012 est.)
country comparison to the world: 36
$357.2 billion (2011 est.)
$340.1 billion (2010 est.)
note:
data are in 2012 US dollars
[see also:
GDP country ranks ]
GDP (official exchange rate):
$258 billion (2012 est.)
[see also: GDP (official exchange rate) country ranks ]
GDP - real growth rate:
1.8% (2012 est.)
country comparison to the world: 148
5% (2011 est.)
7.1% (2010 est.)
[see also:
GDP - real growth rate country ranks ]
GDP - per capita:
$50,700 (2012 est.)
country comparison to the world: 10
$50,200 (2011 est.)
$48,200 (2010 est.)
note:
data are in 2012 US dollars
[see also:
GDP - per capita country ranks ]
GDP - composition by sector:
agriculture: 0%
[see also: GDP - composition by sector - agriculture country ranks ]
industry:
7%
services:
93% (2012 est.)
Labor force:
3.705 million (2012 est.)
country comparison to the world: 93
[see also: Labor force country ranks ]
Labor force - by occupation:
manufacturing: 4.3%
construction:
2.4%
wholesale and retail trade, restaurants, and hotels:
41.4%
financing, insurance, and real estate:
12.5%
transport and communications:
6.3%
community and social services:
16.8%
note:
above data exclude public sector (2011 est.)
Unemployment rate:
3.4% (2012 est.)
country comparison to the world: 28
3.4% (2011 est.)
[see also:
Unemployment rate country ranks ]
Population below poverty line:
NA%
[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:
53.3 (2007)
country comparison to the world: 13
[see also: Distribution of family income - Gini index country ranks ]
Investment (gross fixed):
21.2% of GDP (2012 est.)
country comparison to the world: 83
[see also: Investment (gross fixed) country ranks ]
Budget:
revenues: $50.46 billion
[see also: Budget revenues country ranks ]
expenditures:
$47.56 billion (2012 est.)
Taxes and other revenues:
19.6% of GDP (2012 est.)
country comparison to the world: 163
[see also: Taxes and other revenues country ranks ]
Budget surplus (+) or deficit (-):
1.1% of GDP (2012 est.)
country comparison to the world: 27
[see also: Budget surplus (+) or deficit (-) country ranks ]
Public debt:
30% of GDP (2012 est.)
country comparison to the world: 113
39.8% of GDP (2011 est.)
[see also:
Public debt country ranks ]
Inflation rate (consumer prices):
3.7% (2012 est.)
country comparison to the world: 108
5.3% (2011 est.)
[see also:
Inflation rate (consumer prices) country ranks ]
Central bank discount rate:
0.5% (31 December 2011)
country comparison to the world: 140
0.5% (31 December 2010)
[see also:
Central bank discount rate country ranks ]
Commercial bank prime lending rate:
5% (31 December 2012 est.)
country comparison to the world: 157
5% (31 December 2011 est.)
[see also:
Commercial bank prime lending rate country ranks ]
Stock of narrow money:
$143.8 billion (31 December 2011 est.)
country comparison to the world: 26
$130.4 billion (31 December 2010)
[see also:
Stock of narrow money country ranks ]
Stock of broad money:
$1.028 trillion (31 December 2011 est.)
country comparison to the world: 19
$917.5 billion (31 December 2010)
[see also:
Stock of broad money country ranks ]
Stock of domestic credit:
$544.6 billion (31 December 2012 est.)
country comparison to the world: 24
$515.8 billion (31 December 2011 est.)
[see also:
Stock of domestic credit country ranks ]
Market value of publicly traded shares:
$2.24 trillion (31 December 2011)
country comparison to the world: 6
$2.711 trillion (31 December 2010)
$2.292 trillion (31 December 2009 est.)
[see also:
Market value of publicly traded shares country ranks ]
Agriculture - products:
fresh vegetables; poultry, pork; fish
Industries:
textiles, clothing, tourism, banking, shipping, electronics, plastics, toys, watches, clocks
Industrial production growth rate:
0.8% (2011 est.)
country comparison to the world: 141
[see also: Industrial production growth rate country ranks ]
Current account balance:
$12.87 billion (2012 est.)
country comparison to the world: 24
$12.91 billion (2011 est.)
[see also:
Current account balance country ranks ]
Exports:
$439 billion (2012 est.)
country comparison to the world: 13
$438 billion (2011 est.)
[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 52.4%, US 9.9%, Japan 4% (2011 est.)
Imports:
$499.4 billion (2012 est.)
country comparison to the world: 10
