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Hong Kong - Overview

Contents extracted from the comprehensive atlas of international trade by Export Entreprises

Introduction

Capital:: Hong Kong
Area:: 1 km2
Total Population:: 7.004
Annual growth rate:: 0.00%
Density:: 6.72/km2
Urban population:: 100%
Population of Kowloon (2.000), Victoria (980), Tuen Mun (490), Sha Tin (430), Tseung Kwan O (350), Kwai Chung (312)
Official language: The official languages of Hong Kong are English and Cantonese.
Other languages spoken: Chinese Mandarin is getting more and more importance.
Business language: English is the most widely used language within the Hong Kong government, legal system and commercial sectors.
Ethnic Origins:: 94.9% from China, 2.1% from Philipines, others 3%.
Beliefs: The majority of the population is Buddhist. Confucianism and Taoism are also widely practiced. You can often find the three religions in the same temple. There is minority of Christians (660,000), Muslims (90,000), Hindus (40,000), Sikhs (8,000), Jews and Zorastrians.
Telephone codes:
To make a call from: 001
To make a call to: +852
Internet suffix:: .hk
Type of State::
Hong Kong is Special Administrative Region (SAR) of the People's Republic of China. Its status is defined by the basic law (adopted in 1990 by the National People's Assembly of China), which serves as the "constitution" of the Territory, and which confers its scope to the "one country, two systems" principle.
Type of economy::
High-income economy
The financial heart of South East Asia.

Economic overview

After four years of maintained growth, the global financial crisis led the Hong Kong economy into recession during the third quarter of 2008. The recovery was nevertheless prompt and vigorous and in 2010 the economy resumed a trajectory of strong growth, especially thanks to the dynamism of exports, stimulated by the growth of China. In 2010, the growth is estimated at 6 %.

The government’s priority is now to deal with the vertiginous rise in the real estate prices, which creates problems of social cohesion and access to housing. The announced measures seek to reduce the lever effect on bank lending, reduce speculation, increase the transparency of the market and expand the land available to developers.

The economic crisis has lead to the deterioration of the labor market, particularly in the financial services. However, the unemployment rate decreased to 4.4% in 2010 and should further decrease in 2011.

Main industries

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 also very low. The country's main industrial sectors are textiles, electronic components and household appliances, computer technology and communications.

The tertiary sector, particularly financial services, is the heart of economic activity. It contributes around 90% of the GDP and employs about 80% of the active population. 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.

Foreign trade overview

Hong Kong's economy is considered a model of capitalism because of its dedication to free trade.Trade represents more than 400% of the GDP. Hong Kong belonge among the fifteen top exporters of trade services and the first fifteen trade-based economies in the world.

Foreign trade was pursued intensively during these past years. Structurally in a deficit, the trade balance of Hong Kong has worsened due to the quicker rise in imports.

The island's main trade partners are China, Southeast Asia and Japan. 

FDI

According to the “World Investment Report 2010," published by the United Nations Conference on Trade and Development, Hong Kong has risen to the fourth position in the world for foreign direct investments (FDI) in 2009 and maintained the second place in Asia after China. 

The FDI fluxes, which have slowed down as an effect of the global recession, have again began to grow in 2010. This tendency will continue, due to the key role which the Asian reagion will play in global growth.

Hong Kong's attraction is due to a number of its strengths: its strategic position which makes the island the access gate to the Chinese market, its status as a free port, its simple and very incentive tax regime, its efficient infrastructure and legal security.

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