Back اقتصاد هونغ كونغ Arabic Economia de Hong Kong Catalan Economía de Hong Kong Spanish اقتصاد هنگ کنگ Persian Économie de Hong Kong French כלכלת הונג קונג HE Hongkong gazdasága Hungarian Ekonomi Hong Kong ID Ekonomio di Hong Kong IO 香港の経済 Japanese

Economy of Hong Kong

Economy of Hong Kong
Central and Victoria Harbour of Hong Kong
CurrencyHong Kong dollar (HKD)
1 April – 31 March
Trade organisations
APEC, WTO, Group of Twenty (Chinese delegation), One Belt One Road, AIIB and ICC etc.
Country group
Statistics
PopulationIncrease 7,498,100 (2023)[3]
GDP
  • Increase $401.7 billion (nominal, 2024)[4]
  • Increase $570 billion (PPP, 2024)[4]
GDP rank
GDP growth
  • +6.4% (2021) −3.5% (2022)[5]
GDP per capita
  • Increase $53,165 (nominal, 2024)[4]
  • Increase $75,128 (PPP, 2024)[4]
GDP per capita rank
GDP by sector
1.9% (2022)[5]
Population below poverty line
19.9% (2016 est.)[6]
53.9 high (2016)[6]
Labour force
  • Decrease 3,946,772 (2019)[8]
  • Decrease 59.0% employment rate (2016)[9]
Labour force by occupation
  • manufacturing: 1.0%
  • Electricity, gas and water supply, and waste management: 1.2%
  • construction: 4.3%
  • wholesale and retail trade, restaurants, and hotels: 19.8%
  • transport and communications: 11.2%
  • financing, insurance, and real estate, professional and business service: 30.9%
  • community, social, and personal services: 31.7%
Unemployment4.3% (2022)[5]
Average gross salary
HK$ 19,100
US$ 2,439 per month (2022 May)[10]
HK$ 17,883
US$ 2,284 per month (2022 May)[11]
Main industries
financing and insurance, import and export trade, professional and business services
External
Exports$533.6 billion (2023)[5]
Main export partners
Imports$593.3 billion (2023)[5]
Main import partners
FDI stock
  • Increase$2.2 trillion (31 December 2017 est.)[6]
  • Increase Abroad: $2.036 trillion (31 December 2017 est.)[6]
Increase $14.75 billion (2017 est.)[6]
Positive decrease $633.6 billion (31 December 2017 est.)[6]
Public finances
0.1% of GDP (2017 est.)[6]
+5.2% (of GDP) (2017 est.)[6]
Revenues79.34 billion (2017 est.)[6]
Expenses61.64 billion (2017 est.)[6]
Standard & Poor's:[12]
AAA (Domestic)
AAA (Foreign)
AAA (T&C Assessment)
Outlook: Stable[13]
Moody's:[13]
Aa3
Outlook: Negative
Fitch:[13]
AA+
Outlook: Stable
$430.7 billion (April 2023)[14]
All values, unless otherwise stated, are in US dollars.


The economy of Hong Kong is a highly developed free-market economy. It is characterised by low taxation, almost free port trade and a well-established international financial market.[15][16] Its currency, called the Hong Kong dollar, is legally issued by three major international commercial banks,[17] and is pegged to the US dollar.[18][19] Interest rates are determined by the individual banks in Hong Kong to ensure that they are market driven.[20] There is no officially recognised central banking system, although the Hong Kong Monetary Authority functions as a financial regulatory authority.[21][22]

Its economy is governed under positive non-interventionism, and is highly dependent on international trade and finance. For this reason it is regarded as among the most favorable places to start a company. In fact, a recent study shows that Hong Kong has come from 998 registered start-ups in 2014 to over 2800 in 2018, with eCommerce (22%), Fintech (12%), Software (12%) and Advertising (11%) companies comprising the majority.[23] The Economic Freedom of the World Index lists Hong Kong as the freest economy, with a score of 8.58 based on data from 2022.[24]

Hong Kong's economic strengths include a sound banking system, virtually no public debt, a strong legal system, ample foreign exchange reserves with assets of US$481.6 billion represent over six times the currency in circulation or about 46 per cent of Hong Kong dollar M3 as at the end of March 2022,[25] rigorous anti-corruption measures and close ties with mainland China.[26] The Hong Kong Stock Exchange is a favourable destination for international firms and firms from mainland China to be listed, due to Hong Kong's highly internationalised and modernised financial industry. Additional advantages include the city's capital market in Asia, its size, regulations and available financial tools, which are comparable to London and New York City.[27][28]

Hong Kong's gross domestic product had grown 180 times between 1961 and 1997. Also, the GDP per capita rose by 87 times within the same time frame.[29] Its economy is slightly larger than Chile's or Romania's[30][31][32] and its GDP per capita at purchasing power parity was the twelfth highest globally in 2023. By the latter measure, its GDP per capita was higher than those of the Netherlands, and slightly lower than Brunei. In 2009, Hong Kong's real economic growth fell by 2.8% as a result of the Great Recession.[33]

By the late 20th century, Hong Kong was the seventh largest port in the world and second only to New York City and Rotterdam in terms of container throughput. Hong Kong is a full Member of the World Trade Organization.[34] The Kwai Chung container complex was[when?] the largest in Asia, while Hong Kong shipping owners were[when?] second only to those of Greece in terms of total tonnage holdings in the world. The Hong Kong Stock Exchange is the sixth largest in the world, with a market capitalisation of about US$3.732 trillion.[35]

Hong Kong has also had an abundant supply of labour from the regions nearby. A skilled labour force coupled with the adoption of modern British/Western business methods and technology ensured that opportunities for external trade, investment, and recruitment were maximised. Prices and wages in Hong Kong are relatively flexible, depending on the performance and stability of the economy of Hong Kong.[36]

Hong Kong raises revenues from the sale and taxation of land and through attracting international businesses to provide capital for its public finance, due to its low tax policy. According to Healy Consultants, Hong Kong has the most attractive business environment within East Asia, in terms of attracting foreign direct investment (FDI).[37] In 2013, Hong Kong was the third largest recipient of FDI in the world.[38]

Hong Kong ranked fourth on the Tax Justice Network's 2011 Financial Secrecy Index.[39] The Hong Kong Government was the fourth highest ranked Asian government[40] in the World Economic Forum's Network Readiness Index (NRI), a measure of a government's information and communication technologies in 2016, and ranked 13th globally.[41]

Hong Kong is ranked as the 18th most innovative territory in the Global Innovation Index in 2024, and 3rd in the Global Financial Centres Index.

According to the Economic Freedom of the World 2024 report, Hong Kong emerged as the top-ranked region, excelling particularly in the domains of Freedom to Trade Internationally and Regulation.

  1. ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Archived from the original on 21 December 2019. Retrieved 29 September 2019.
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  4. ^ a b c d "Report for Selected Countries and Subjects: April 2024". imf.org. International Monetary Fund.
  5. ^ a b c d e f g h Cite error: The named reference C&SD was invoked but never defined (see the help page).
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  40. ^ After Singapore, S. Korea and Taiwan
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