Hong Kong Economy

Hong Kong’s highly favorable geographical position , with a rapidly growing Mainland China as its hinterland, the Hong Kong Special Administrative Region is a hub for international business, trade and finance and other wealth generating assets. It has a superb sheltered natural harbor and under the British administration, it is a thriving international port with cosmopolitan services economy coupled with a free market economic policy.

The Hong Kong economy expanded by 4.3% in the first three quarters of 2008, after growing by 6.4% in 2007. The reduction in the expansion patterns is due to the global market turbulence. The labor force in Hong Kong is skilled , adaptable and hard working and have adopted western business methods and technology for value-added service rendering. Probably that is a potent factor for the increase in employment rates. A large portion of revenues are generated due to tourism here. In 2008, there were 29.5 million visitors in this port, nearly four times larger than the local populaton.

In order to entrench the economic and trade relations between Hong Kong and the Mainland, 17 service sectors have met liberalization measures. This has expanded the growth potential of Hong Kong companies in China. The political administrations have managed to keep the budget deficits low by holding back public borrowing, credit expansion and inflation rates. Hong Kong firms and industries find surviving in the economic environment, very competitive due to hurdles in the form of political production planning and price and import controls. However, the port is slowly and steadily opening up to the global economic environment and shall continue its marathon towards economic success.

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