Hong Kong

Capital: Hong Kong

Local time:
It is %T:%M %A in Hong Kong

Exchange rate on :

GDP growth rate: 4.2% in 2012

FDI stock: 1 184 471 million USD in 2007

Country risk: See the country risk analysis from Hong Kong provided by Ducroire.

Economic trends

GDP growth reached an average level of 5% during the period of 1989 to 2006. In 2008, the country was extremely affected by the financial crisis owing to its strong dependence on foreign capital and the strong financialization of its economy. After four years of maintained growth, the global financial crisis led the Hong Kong economy into recession during the third quarter of 2008. The deterioration of the foreign environment, which led to the decrease in Hong Kong's commercial trade, caused a significant drop in domestic demand. From 2008, private consumption dropped, a trend which should continue during the next three years. The price indicator is expected to follow this downward trend. Economic growth had enabled the noticeable improvement of the employment market. This market deteriorated considerably, especially financial services, and recovery is not expected before 2011. Due to the strong decrease in global and domestic demand, the inflationary pressure (4.3% in 2008) let up in 2009. 

Main branches of industry

Since the agricultural sector is almost non-existent, Hong Kong has to import 80% of its food supplies. Hong Kong does not have any natural resources and depends entirely on imports of raw materials and power. Agriculture contributes practically nothing to the economy.
The manufacturing Industry's contribution to the GDP is very low. The country's main industrial sectors are textiles, clothing and electronic components.
The tertiary sector, particularly financial services, is the heart of economic activity and contributes around 90% of the GDP. Hong Kong is a services center for Asian companies, especially those that trade with China. Additionally, the tourism industry is booming mainly, due to an exponential increase in the number of visitors from mainland China.

International trade

Hong Kong is amongst the world's first fifteen commercial services exporters and the world's fifteen primary trade economies. Hong Kong's economy is considered as a model of capitalism because of its dedication to free trade. Foreign trade was pursued intensively during these past years. Maintained by the strength of trade with China and the weakness of the dollar, export and import of goods grew by 10%. However, a decrease in trade was noted in 2009 and Hong Kong's trade deficit worsened. This trend should continue in 2010.
The island's main trade partners are China, Southeast Asia and Japan. 

Learn more

For more information on Hong Kong

The Country Profiles of the Foreign and Commonwealth Office

Countries information of the UK Trade and Investment Website

For more international news

Business News of the British Chamber

For more advices

The business advices of the Foreign and Commonwealth Office

Are You Ready to Export? - The online test of the UK Trade and Investment Website