Economy of Hong Kong
May 18th, 2008
Vladimir Gonzalez asked:
Hong Kong Economy
Subject to both British and Chinese rule, since the 70’s Hong Kong economy has also been subject to an economic policy dubbed positive, in which the policy of non-interventionism was predominant, as it was hailed by the country’s former financial secretary.
Cited and praised by worldwide economists, due to the benefits of this laissez-faire capitalism, Hong King’s kind of policy eventually placed the country among the world’s freest economies, for 14 consecutive years. The World Report of Economic Freedom also places Hong Kong first, though with some arguments addressed to the particular term laissez-faire, which inadequately characterizes the country’s policy.
To get a better idea, in Hong Kong the government owns the land, and it is the government the one that leases it to private users, the sale of the land being forbidden. The price of the land is thus kept stable- some have even argued that it would be artificially high. This policy gives free way to the government to be able to better support, at a lower rate public spending. Even more, the country’s liberal political-legal environment has been registered as more stable than that of most countries.
Hong Kong Economy enters the high-income group countries, according to the Classification of economies by Income. The country also enjoys a predominant free market economic system, dependent on International Trade and Commerce
Based on the estimated data of 2005, the Gross Domestic Product in Hong Kong was at $254.2 billion, with a growth rate of 7 %. That same year, the GDP per capita was at $36,800. With these figures, the economy of Hong Kong can easily be compared to those of the biggest economies of Western Europe. The increase in the GDP was calculated at a rate of 5% between 1989 and 2005, even though the country has had two recessions, as a result of the Asian financial crisis in 1997-1998 and also the global downturn from 2001-2002.
The country’s unique geographical location and diverse trading opportunities, as well as abundance human resources, have driven Hong Kong to great wealth-generating assets. Hong Kong also prides with one of the best-sheltered harbors, now a highly developed and thriving international port, it also was major port for pirates for centuries, before the British colonized it in 1841.
Having a skilled, adaptable, and also hard-working labor force, even more so once modern British business methods were implemented, together with modern technology, the chances for external trade, investment, and recruitment were soon doubled.
Further reading in EconomyWatch.com:
Overview of the Economy of Hong Kong
Imports and Exports of Hong Kong
Economic Indicators of Hong Kong
Hong Kong Economy
Subject to both British and Chinese rule, since the 70’s Hong Kong economy has also been subject to an economic policy dubbed positive, in which the policy of non-interventionism was predominant, as it was hailed by the country’s former financial secretary.
Cited and praised by worldwide economists, due to the benefits of this laissez-faire capitalism, Hong King’s kind of policy eventually placed the country among the world’s freest economies, for 14 consecutive years. The World Report of Economic Freedom also places Hong Kong first, though with some arguments addressed to the particular term laissez-faire, which inadequately characterizes the country’s policy.
To get a better idea, in Hong Kong the government owns the land, and it is the government the one that leases it to private users, the sale of the land being forbidden. The price of the land is thus kept stable- some have even argued that it would be artificially high. This policy gives free way to the government to be able to better support, at a lower rate public spending. Even more, the country’s liberal political-legal environment has been registered as more stable than that of most countries.
Hong Kong Economy enters the high-income group countries, according to the Classification of economies by Income. The country also enjoys a predominant free market economic system, dependent on International Trade and Commerce
Based on the estimated data of 2005, the Gross Domestic Product in Hong Kong was at $254.2 billion, with a growth rate of 7 %. That same year, the GDP per capita was at $36,800. With these figures, the economy of Hong Kong can easily be compared to those of the biggest economies of Western Europe. The increase in the GDP was calculated at a rate of 5% between 1989 and 2005, even though the country has had two recessions, as a result of the Asian financial crisis in 1997-1998 and also the global downturn from 2001-2002.
The country’s unique geographical location and diverse trading opportunities, as well as abundance human resources, have driven Hong Kong to great wealth-generating assets. Hong Kong also prides with one of the best-sheltered harbors, now a highly developed and thriving international port, it also was major port for pirates for centuries, before the British colonized it in 1841.
Having a skilled, adaptable, and also hard-working labor force, even more so once modern British business methods were implemented, together with modern technology, the chances for external trade, investment, and recruitment were soon doubled.
Further reading in EconomyWatch.com:
Overview of the Economy of Hong Kong
Imports and Exports of Hong Kong
Economic Indicators of Hong Kong