Hong Kong Economy - 2004

Economy - overview:
Hong Kong has a free market economy highly dependent on international trade. Natural resources are limited, and food and raw materials must be imported. Imports and exports, including reexports, 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 increased competitive pressure on Hong Kong's service industries, and Hong Kong's re-export business from China is a major driver of growth. Per capita GDP compares with the level in the four big economies of Western Europe. GDP growth averaged a strong 5% in 1989-1997, but Hong Kong suffered two recessions in the past 6 years because of the Asian financial crisis in 1998 and the global downturn of 2001-2002. The Severe Acute Respiratory Syndrome (SARS) outbreak also battered Hong Kong's economy, but a boom in tourism from the mainland because of China's easing of travel restrictions, a return of consumer confidence, and a solid rise in exports resulted in the resumption of strong growth in late 2003.

GDP:
purchasing power parity - $212.2 billion (2003 est.)

GDP - real growth rate:
2.9% (2003 est.)

GDP - per capita:
purchasing power parity - $28,700 (2003 est.)

GDP - composition by sector:
agriculture: 0.1%
industry: 12.9%
services: 87.1% (2002 est.)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
-2.6% (2003 est.)

Labor force:
3.48 million (2002 est.)

Labor force - by occupation:
wholesale and retail trade, restaurants, and hotels 43.5%, financing, insurance, and real estate 19.5%, community and social services 17.8%, manufacturing 8.2%, transport and communications 7.8%, construction 2.9% (Note: above data exclude public sector) (2002 est.)

Unemployment rate:
7.9% (2003)

Budget:
revenues: $22.8 billion
expenditures: $30.7 billion, including capital expenditures of $5 billion (FY02/03)

Industries:
textiles, clothing, tourism, banking, shipping, electronics, plastics, toys, watches, clocks

Industrial production growth rate:
2.7% (2003 est.)

Electricity - production:
30.48 billion kWh (2001)

Electricity - production by source:
fossil fuel: 100%
hydro: 0%
other: 0% (2001)
nuclear: 0%

Electricity - consumption:
37.12 billion kWh (2001)

Electricity - exports:
1.581 billion kWh (2001)

Electricity - imports:
10.36 billion kWh (2001)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
257,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Natural gas - production:
0 cu m (2001 est.)

Natural gas - consumption:
680.9 million cu m (2001 est.)

Natural gas - exports:
0 cu m (2001 est.)

Natural gas - imports:
680.9 million cu m (2001 est.)

Agriculture - products:
fresh vegetables, poultry, fish, pork

Exports:
$225.9 billion f.o.b., including reexports (2003 est.)

Exports - commodities:
electrical machinery and appliances, textiles, apparel, footwear, watches and clocks, toys, plastics, precious stones

Exports - partners:
China 39.3%, US 21.4%, Japan 5.4% (2002)

Imports:
$230.3 billion (2003 est.)

Imports - commodities:
electrical machinery and appliances, textiles, foodstuffs, transport equipment, raw materials, semimanufactures, petroleum, plastics; a large share is reexported

Imports - partners:
China 44.2%, Japan 11.3%, Taiwan 7.2%, US 5.7%, South Korea 4.7%, Singapore 4.7% (2002)

Debt - external:
$61.2 billion (2003 est.)

Currency:
Hong Kong dollar (HKD)

Currency code:
HKD

Exchange rates:
Hong Kong dollars per US dollar - 7.79 (2003), 7.8 (2002), 7.8 (2001), 7.79 (2000), 7.76 (1999)