Economy of Hong Kong

Economy - overview:

Hong Kong has a bustling free market economy highly dependent on international trade. Natural resources are limited, and food and raw materials must be imported. Indeed, imports and exports, including reexports, each exceed GDP in dollar value. Even before Hong Kong reverted to Chinese administration on 1 July 1997 it had extensive trade and investment ties with China. Per capita GDP compares with the level in the four big countries of Western Europe. GDP growth averaged a strong 5% in 1989-97. The widespread Asian economic difficulties in 1998 hit this trade-dependent economy quite hard, with GDP down 5%. The economy is recovering, with growth of 1.8% in 1999 to be followed by projected growth of 3.7% in 2000.

GDP: purchasing power parity - $158.2 billion (1999 est.)

GDP - real growth rate: 1.8% (1999 est.)

GDP - per capita: purchasing power parity - $23,100 (1999 est.)

GDP - composition by sector:
agriculture: 0.1%
industry: 14.7%
services: 85.2% (1997 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): -4% (1999 est.)

Labor force: 3.36 million (1998 est.)

Labor force - by occupation: wholesale and retail trade, restaurants, and hotels 31.9%, social services 9.9%, manufacturing 9.2%, financing, insurance, and real estate 13.1%, transport and communications 5.7%, construction 2.6%, other 27.6% (October 1998)

Unemployment rate: 6% (1999 est.)

Budget:
revenues: $23.1 billion
expenditures: $25.1 billion, including capital expenditures of $NA (FY98/99)

Industries: textiles, clothing, tourism, electronics, plastics, toys, watches, clocks

Industrial production growth rate: -8.7% (1998 est.)

Electricity - production: 29.529 billion kWh (1998)

Electricity - production by source:
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 34.612 billion kWh (1998)

Electricity - exports: 610 million kWh (1998)

Electricity - imports: 7.76 billion kWh (1998)

Agriculture - products: fresh vegetables; poultry

Exports: $169.98 billion (including reexports; f.o.b., 1999 est.)

Exports - commodities: clothing, textiles, footwear, electrical appliances, watches and clocks, toys

Exports - partners: China 34%, US 23%, Japan 5%, Germany 4%, UK 4%, Singapore 2% (1998)

Imports: $174.4 billion (c.i.f., 1999)

Imports - commodities: foodstuffs, transport equipment, raw materials, semimanufactures, petroleum; a large share is reexported

Imports - partners: China 41%, Japan 13%, US 8%, Taiwan 7%, South Korea 5%, Singapore 4% (1998)

Debt - external: $48.1 billion (1999)

Economic aid - recipient: none

Currency: 1 Hong Kong dollar (HK$) = 100 cents

Exchange rates: Hong Kong dollars (HK$) per US$ - 7.7780 (January 2000), 7.7575 (1999), 7.7453 (1998), 7.7427 (1997), 7.730 (1996), 7.800 (1995); note - Hong Kong became a special administrative region of China on 1 July 1997; before then, linked to the US dollar at the rate of about 7.8 HK$ per 1 US$

Fiscal year: 1 April - 31 March