Economy - overview:
Hong Kong has a free market, entrepot economy, highly dependent on
international trade. Natural resources are limited, and food and raw
materials must be imported. Gross imports and exports (i.e.,
including reexports to and from third countries) 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. Hong Kong has been further integrating its economy
with China because China's growing openness to the world economy has
made manufacturing in China much more cost effective. Hong Kong's
reexport business to and from China is a major driver of growth. Per
capita GDP is comparable to that of the four big economies of
Western Europe. GDP growth averaged a strong 5% from 1989 to 2005,
but Hong Kong suffered two recessions in the past eight years
because of the Asian financial crisis in 1997-1998 and the global
downturn in 2001-2002. Although the Severe Acute Respiratory
Syndrome (SARS) outbreak in 2003 also battered Hong Kong's economy,
a solid rise in exports, a boom in tourism from the mainland because
of China's easing of travel restrictions, and a return of consumer
confidence resulted in the resumption of strong growth from late
2003 through 2005.
GDP (purchasing power parity):
$234.3 billion (2005 est.)
GDP (official exchange rate):
$172.6 billion (2005 est.)
GDP - real growth rate:
7.3% (2005 est.)
GDP - per capita (PPP):
$34,000 (2005 est.)
GDP - composition by sector: agriculture: 0.1% industry: 9.2% services: 90.6% (2005 est.)
Labor force:
3.61 million (October 2005)
Labor force - by occupation:
manufacturing 7.5%, construction 2.9%, wholesale and retail trade,
restaurants, and hotels 43.9%, financing, insurance, and real estate
19.6%, transport and communications 7.1%, community and social
services 18.8%
note: above data exclude public sector (2005 est.)
Unemployment rate:
5.5% (2005 est.)
Population below poverty line:
NA%