For several years now, Hong Kong has been at the top of the ranking of the most competitive economy. A favorable business environment, minimal restrictions on trade and capital flows make it one of the best places to do business worldwide. Read more about the economy, industry and finance of Hong Kong in our article.
What do we know about Hong Kong?
Hong Kong is a city of skyscrapers, a vibrant and incredibly dynamic metropolis that always works and never rests. It is very similar to London, Moscow or New York. By the way, it is with these three cities that Hong Kong adjoins in the ranking of the world's leading financial centers.
Hong Kong (or Hong Kong) is located on the southern coast of China and is its special administrative region. It occupies the island of the same name, Kowloon Peninsula and another 262 small islands. Hong Kong is located at the crossroads of important maritime trade routes and effectively takes full advantage of its geographical position. The total area of the territory is 1092 sq. Km.
On the political map of Asia, Hong Kong emerged in 1841 as a colony of the British Empire. In 1941-1945 he was under Japanese occupation. In 1997, after lengthy negotiations between China and the United Kingdom, this territory became part of the PRC. At the same time, Hong Kong was granted wide autonomy until 2047. China pledged to take on only defense and foreign policy issues. The control over everything else (police, financial system, duties, migration issues, etc.) remained with the Hong Kong people.
Hong Kong has a population of over 7 million. The ethnic structure is dominated by the Chinese (about 98%). The British, New Zealanders, Australians, Japanese, Pakistanis, Filipinos also live here. Hong Kong has two official languages - Chinese and English.
Hong Kong: the country's economy in figures and facts
Due to its extremely favorable geographical position, Hong Kong has become the most important transportation hub of China and the largest financial and trade center of all of Asia. The modern economy of Hong Kong is characterized by free movement of capital and an extremely high level of protection for foreign investment. The main profits to the local budget come from the financial sector, trade and services. In addition, industry is well developed here.
General characteristics of the Hong Kong economy in figures and facts:
- GDP (for 2017): 341.7 billion US dollars.
- GDP per capita (for 2017): $ 46, 109.
- Annual GDP growth is within 4%.
- Almost 90% of Hong Kong's GDP comes from the service sector.
- The total rate of all taxes is 22.8%.
- Unemployment rate: 3.1%.
- First place in the ranking of the competitiveness of the economies of the world (2017).
- Third place in the global rating of investment attractiveness.
- First place in the ranking of economic freedom (according to the Heritage Foundation).
- Hong Kong is the best country / territory for doing business in 2013 (according to Bloomberg).
- In the ranking of countries in terms of the level of development of the digital economy, Hong Kong ranks 6th in the world.
Hong Kong has its own currency, which was put into circulation at the end of the XIX century. The Hong Kong Dollar (international code: HKD) has been pegged to the US currency since 1983. Its rate is quite stable and ranges from 7.75-7.85 to $ 1 US. Hong Kong currency is represented by coins (cents) and paper banknotes (the largest bill is $ 1, 000).
Industry
The Hong Kong industry began to emerge in the middle of the twentieth century. In 2010, there were about ten thousand different industrial enterprises, which employed at least 100 thousand people. The bulk of the factories, factories and company offices are concentrated within the industrial zone of Taipou in the district of the same name.
The following industries have been most developed in Hong Kong:
- power engineering;
- production of building materials;
- electronics and electrical engineering;
- food industry;
- watch industry;
- polygraphy;
- production of toys and souvenirs.
Agriculture
The agro-industrial sector is poorly developed due to lack of free land. Only 4% of working Hong Kong people are employed in agriculture. Hong Kong has developed fishing, horticulture, floriculture, and poultry farming. Small artels and household households prevail here. Floating seafood farms are popular.
Financial Sector and Tourism
As of 2011, 198 financial institutions and banks were operating in Hong Kong. The total number of loans issued by them for this year amounted to 213 billion dollars. Hong Kong's stock market is the third largest in Asia and the seventh in the world. By the number of initial shares placed, the Hong Kong Stock Exchange is ahead of similar sites in London and New York.
Among other things, the tourism sector is also developing in Hong Kong. Every year it brings about 5% of GDP and actively stimulates the development of transport, hotel and restaurant business. In 2011, nearly 42 million people visited Hong Kong. Most tourists come from mainland China.
Hong Kong's economic and social problems
But not everything is so rosy in this amazing industrial metropolis. Among the weaknesses of the Hong Kong economy, it is worth highlighting a rather low wage, which today is equal to 3.8 US dollars per hour. About 20% of Hong Kong people live below the poverty line. Another problem is the acute shortage of middle-class residential real estate.
In recent years, the Hong Kong economy has increasingly “dissolved” in the Chinese. For comparison: if in 1998 the city’s GDP reached 16% of the total Chinese, then in 2014 its share decreased to only 3%.
Another socio-economic problem in Hong Kong is the too low level of education of the local population. Many Hong Kong retirees do not even have a secondary education, although Hong Kong universities have traditionally held high positions in various ratings. And the University of Hong Kong (HKU) is considered the best in all of Asia.
Despite the insufficiently high welfare of the local population and a number of other problems, Hong Kong ranks 15th in the ranking of countries in the Human Development Index (HDI).
