ECONOMY
Hong Kong is one of the world's most open and dynamic economies. Hong Kong per capita GDP is comparable to other developed countries. Real GDP expanded by 6.4% in 2007 year-on-year, driven by thriving exports, vibrant inbound tourism and strong consumer spending. Severe acute respiratory syndrome (SARS) caused the Hong Kong economy to shrink during the first half of 2003, and property prices had fallen 66% from their late 1997 peak, but have since more than doubled from that lower base. The unemployment rate declined to 3.3% in April-June 2008, the lowest level since mid-1998. The surplus for fiscal year 2007-08 was $15.9 billion or 7.6% of GDP, attributed to the robust economy, increased corporate profits and salaries, the buoyant stock market, and a stable property market.
Hong Kong enjoys a number of economic strengths, including a sound banking system, virtually no public debt, a strong legal system, ample foreign exchange reserves and an able and rigorously enforced anti-corruption regime. Hong Kong’s liberal economic system enables it to respond quickly to changing circumstances. It continues to take measures designed to improve its attractiveness as a commercial and trading center, especially after China's entry into the World Trade Organization (WTO), and is continually refining its financial architecture. The government is deepening its economic interaction with the Pearl River Delta in an effort to maintain Hong Kong's position as a gateway to China. These efforts include the conclusion of a free trade agreement with China, known as “the Closer Economic Partnership Arrangement” (CEPA), which applies zero tariffs to all Hong Kong-origin goods and preferential treatment in 40 service sectors. Hong Kong, along with the Macau SAR, is also participating in a new pan-Pearl River Delta trade block with nine Chinese provinces, which aims to lower trade barriers among members, standardize regulations, and improve infrastructure. U.S. companies have a generally favorable view of Hong Kong's business environment, including its legal system and the free flow of information, low taxation, and infrastructure. The American Chamber of Commerce's annual business confidence survey, released in December 2007, showed 99% of respondents had a "good" or "satisfactory" outlook for 2008. Survey results indicated a positive economic outlook through 2010.
Economy (2007)
GDP (2007): $207.2 billion.
GDP real growth rate (2007): 6.4%.
Per capita GDP (2007): $29,900.
Natural resources: Outstanding deepwater harbor.
Industry: Types--textiles, clothing, electronics, plastics, toys, watches, clocks.
Trade: Exports--$344.6 billion: clothing, electronics, textiles, watches and clocks, office machinery. Imports--$367.7 billion: consumer goods, raw materials and semi-manufactures, capital goods, foodstuffs, fuels.
