Economy - overview Hong Kong has a bustling free market economy with few tariffs or nontariffbarriers. Natural resources are limited, and food and raw materials must beimported. Manufacturing and construction account for about 18% of GDP. Goodsand services exports account for about 50% of GDP. Real GDP growth averageda remarkable 8% in 1987-88, slowed to 3.0% in 1989-90, and picked up to 4.2%in 1991, 5.0% in 1992, 5.2% in 1993, 5.5% in 1994, 4.8% in 1995, and 4.7%in 1996. A shortage of labor continues to put upward pressure on prices andthe cost of living. Prospects for 1997 remain bright so long as major tradingpartners continue to be reasonably prosperous and so long as investors feelChina will support free market practices after the takeover on 1 July 1997.

GDP purchasing power parity - $163.6 billion (1996 est.)

GDP - real growth rate 4.7% (1996 est.)

GDP - per capita purchasing power parity - $26,000 (1996 est.)

GDP - composition by sector
agriculture : 0.2%
industry: 18.4%
services: 81.4% (1995 est.)

Inflation rate - consumer price index 6.5% (1996)

Labor force
total: 3.251 million (1996)
by occupation: wholesale and retail trade, restaurants, and hotels 34.4%, services19.8%, manufacturing 14.2%, financing, insurance, and real estate 12.4%, transportand communications 5.1%, construction 2.1%, other 12% (1994)

Unemployment rate 3.1% (1996 est.)

Budget
revenues: $19 billion
expenditures: $14.1 billion, including capital expenditures of $289 million (FY95/96est.)

Industries textiles, clothing, tourism, electronics, plastics, toys, watches, clocks

Industrial production growth rate -2.6% (1996)

Electricity - capacity 10.32 million kW (1994)

Electricity - production 25.14 billion kWh (1994)

Electricity - consumption per capita 3,716 kWh (1995 est.)

Agriculture - products fresh vegetables; poultry

Exports
total value : $197.2 billion (including reexports; f.o.b., 1996 est.)
commodities: clothing, textiles, yarn and fabric, footwear, electrical appliances,watches and clocks, toys
partners: China 33%, US 22%, Japan 6%, Germany 4%, UK 3%, Singapore 3% (1995)

Imports
total value: $217.2 billion (c.i.f., 1996 est.)
commodities: foodstuffs, transport equipment, raw materials, semimanufactures, petroleum;a large share is reexported
partners: China 36%, Japan 15%, Taiwan 9%, US 8%, Singapore 5%, South Korea 5%(1995)

Debt - external none (1996)

Economic aid $NA

Currency 1 Hong Kong dollar (HK$) = 100 cents

Exchange rates Hong Kong dollars (HK$) per US$ - 7.730 (1996), 7.800 (1995), 7.800(1994), 7.800 (1993), 7.741 (1992); note - linked to the US dollar at therate of about 7.8 HK$ per 1 US$

Fiscal year 1 April - 31 March

NOTE: The information regarding Hong Kong on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Hong Kong Economy 1997 information contained here. All suggestions for corrections of any errors about Hong Kong Economy 1997 should be addressed to the CIA.