Flag description: red with a stylized, white, five-petal bauhinia flower in the center
Economy Hong Kong
Economy - overview:
Hong Kong has a free market economy highly dependent on
international trade. The territory has become more closely linked to
mainland China over the past few years. Even before Hong Kong
reverted to Chinese administration on 1 July 1997, it had extensive
trade and investment ties with China. Hong Kong's service industry
over the past decade has grown rapidly as its manufacturing industry
has moved to the mainland. Hong Kong also has stepped up its efforts
to gain approval to offer more mainland financial services in a bid
to remain competitive with China's growing financial centers. Hong
Kong's 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. Per capita GDP exceeds that of the four big economies of
Western Europe. GDP growth averaged a strong 5% from 1989 to 2006,
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 2006. Moreover, several large initial public offerings
of Chinese companies on the Hong Kong stock exchange since late 2005
have helped to boost Hong Kong's status as a financial hub and have
contributed to the improved performance of the market in late 2006.
GDP (purchasing power parity):
$253.1 billion (2006 est.)
GDP (official exchange rate):
$187.1 billion (2006 est.)
GDP - real growth rate:
5.9% (2006 est.)
GDP - per capita (PPP):
$36,500 (2006 est.)
GDP - composition by sector: agriculture: 0.1% industry: 9% services: 90.9% (2006 est.)
Labor force:
3.63 million (2006 est.)
Labor force - by occupation:
manufacturing 7.5%, construction 7.5%, wholesale and retail trade,
restaurants, and hotels 43.9%, financing, insurance, and real estate
2.9%, transport and communications 7.1%, community and social
services 43.9%
note: above data exclude public sector (2005 est.)