Hong Kong economy: country, history, gross domestic product, trade, industry, agriculture, employment and welfare

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:43

Hong Kong has been at the top of the ranking of the most competitive economy for several years in a row. Favorable business environment, minimal restrictions on trade and movement of capital make it one of the best places to do business in the world. Read more about the economy, industry and finance of Hong Kong in our article.

What do we know about Hong Kong?

Hong Kong is a city of skyscrapers, a lively and incredibly dynamic metropolis that is always working and never resting. It is very similar to London, Moscow or New York. By the way, it is with these three cities that Hong Kong neighbors in the ranking of the world's leading financial centers.

Hong Kong (or Hong Kong) is located on the south coast of China and is its special administrative region. It occupies the island of the same name, the Kowloon Peninsula and 262 other small islands. Hong Kong is located at the crossroads of important maritime trade routes and effectively uses all the benefits of itsgeographic location. The total area of the territory is 1092 sq. km.

On the political map of Asia, Hong Kong emerged in 1841 as a colony of the British Empire. In 1941-1945 he was under Japanese occupation. In 1997, after lengthy negotiations between China and the UK, this territory became part of the PRC. At the same time, Hong Kong was granted broad autonomy until 2047. China pledged to take over only defense and foreign policy issues. Control over everything else (the police, the financial system, duties, migration issues, etc.) remained with the Hong Kongers.

The population of Hong Kong is over 7 million people. The ethnic structure is dominated by the Chinese (about 98%). The British, New Zealanders, Australians, Japanese, Pakistanis, Filipinos also live here. Hong Kong has two official languages, Chinese and English.

Hong Kong: the country's economy in facts and figures

Thanks to its extremely favorable geographical position, Hong Kong has become the most important transport hub in China and the largest financial and trade center in all of Asia. The modern economy of Hong Kong is characterized by the free movement of capital and an extremely high level of protection for foreign investment. The main profits to the local budget are brought by the financial sector, trade and services. In addition, the industry is quite well developed here.

General characteristics of the Hong Kong economy in facts and figures:

• GDP (2017): $341.7 billion.
• GDP per capita (for 2017year): $46,109.
• Annual GDP growth within 4%.
• Almost 90% of Hong Kong's GDP comes from the service sector.
• The total rate of all taxes is 22.8%.
• Unemployment rate: 3.1%.
• First place in the World Economic Competitiveness Index (2017).
• Third place in the global rating of investment attractiveness.
• 1 Economic Freedom Index (Heritage Foundation).
• Hong Kong is the best country/territory to do business in 2013 (Bloomberg).
• In the ranking of countries by the level of development of the digital economy, Hong Kong ranks 6th in the world.

Hong Kong has its own currency, which was put into circulation at the end of the 19th century. The Hong Kong dollar (international code: HKD) has been pegged to the US currency since 1983. Its rate is quite stable and fluctuates in the range of 7.75-7.85 to $1 US. The currency of Hong Kong is represented by coins (cents) and paper banknotes (the largest bill is $1,000).

Industry

The industry of Hong Kong began to emerge in the middle of the twentieth century. In 2010, there were about ten thousand different industrial enterprises, which employed at least 100 thousand people. The bulk of plants, factories and company offices are concentrated within the Taipou industrial zone in the district of the same name.

The following industries are the most developed in Hong Kong:

• energy;
• production of building materials;
• electronicsand electrical engineering;
• food industry;
• watch industry;
• printing;
• production of toys and souvenirs.

Agriculture

Agro-industrial sector is underdeveloped due to lack of free land. Only 4% of working Hong Kongers are employed in agriculture. Fishing, horticulture, floriculture, and poultry farming are developed in Hong Kong. Small artels and home gardens predominate here. Floating seafood farms are popular.

Financial sector and tourism

As of 2011, there were 198 financial institutions and banks operating in Hong Kong. The total number of loans issued by them for this year amounted to 213 billion dollars. The Hong Kong stock market is the third largest in Asia and the seventh largest in the world. The Hong Kong Stock Exchange is ahead of similar markets in London and New York in terms of the number of initial public offerings.

Among other things, tourism is also developing in Hong Kong. Annually, it brings about 5% of GDP and actively stimulates the development of transport, hotel and restaurant business. Almost 42 million people visited Hong Kong in 2011. Most tourists come from mainland China.

Economic and social problems of Hong Kong

But not everything is so rosy in this amazing industrial metropolis. Among the weaknesses of the Hong Kong economy, it is worth highlighting the rather low wages, which today are 3.8US dollars per hour. Approximately 20% of Hong Kongers live below the poverty line. Another problem is the acute shortage of middle-class residential real estate.

In recent years, Hong Kong's economy is increasingly "dissolved" in the Chinese. For comparison: if in 1998 the city's GDP reached 16% of China's total, then in 2014 its share fell to only 3%.

Another social and economic problem in Hong Kong is the low level of education of the local population. Many Hong Kong retirees do not even have a secondary education, although Hong Kong universities traditionally occupy high positions in various rankings. And Hong Kong University (HKU) is considered the best in all of Asia.

Despite the lack of well-being of the local population and a number of other problems, Hong Kong is ranked 15th in the Human Development Index (HDI) ranking.

Immigration to Hong Kong

Should I move to Hong Kong for permanent residence? Let's briefly analyze all the pros and cons.

It's worth mentioning right away that finding a job in Hong Kong is not so easy. Competition in the local labor market is quite high. There are many vacancies in education, the financial sector, tourism and journalism. The amount of wages depends on a number of factors (speci alty, experience and even gender). According to statistics, the average monthly income in Hong Kong is about 320,000 rubles.

Reviews about Hong Kong Russians who live and work there are mostly positive. So, according to ourcompatriot Galina Ashley (co-founder of the Russian Business Club in Hong Kong) is a very dynamic city with amazing energy. If you wish, you can achieve everything here.

It is important to note that finding a job in Hong Kong without knowing English is unrealistic. An additional advantage for the applicant will be knowledge of Chinese (Putonghua or Mandarin).

Hong Kong is incredibly cosmopolitan. There might be a McDonald's on one street, and a restaurant serving shark fin soups around the corner. Western culture is deeply ingrained in the minds and life of Hong Kongers, and in this city it coexists peacefully with traditional Asian traditions.