Business Pattern of Hong Kong

Published: 2021-09-13 19:30:10
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Category: Industry, Asia

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Hong Kong is an individual government state of the people’s republic of china. It became a part of China in the year of 1997. Under the “one country, two systems” agreement, China guaranteed not to force its communist approaches on Hong Kong and to permit Hong Kong a high level of independence in all issues with the exception of outside and resistance arrangement for 50 years. This strategy has been stressed by PRC political impedance as of late, however Hong Kong’s open and market-driven economy keeps on thriving, progressively coordinated with the terrain through exchange, tourism, and budgetary connections. Hong Kong’s dependence on remote exchange and venture abandons it defenseless against worldwide money related market unpredictability or a stoppage in the worldwide economy (1, 2, 6).
Current Economic situation: Hong Kong is one of the world’s leading international economic centers. Current ranking position of this country is No 1 and the economic freedom score is 90.2. It’s general score need expanded eventually Hong Kong perusing 0. 4 point.
Title Billion & percentage
GDP(ppp) 2,662,637 million HKD (340.1 billion USD, at current market prices, 2017)
Annual compound growth 2.4 %
GDP Growth 3.7 %
GDP Per capita HK$360,220; 2017 (US$46,000; 2017)
Unemployment rate 3.4 %
Inflation rate 2.6 %
FDI inflow $ 108.1 billion

The GDP rate of Hong Kong is $ 340.1 billion USD, at current market prices, 2017 and the annual compound growth is 2.4 %. GDP growth rate is 3.7% and the per capita is HK$ 360,220 billion dollar, US $46,000 (2017). Unemployment rate of Hong Kong is very low, it is only 3.4 %. The inflation rate and the FDI inflow is 2.6 % & $ 108.1 billion.
Export: Hong Kong is the 33rd largest exporter country in 2016 which value is $120B. Last 5 years their exports rate has been decreased but recently they have a good business at Gold 24%. Hong Kong exports various things such as-Gold, which’s export value is $ 29.3 B, Diamonds 6.3% & export value $ 7.59B, Jewelry 3.2 % & export value $3.84 B, precious stone 2.2% & Export value $ 2.69B,pearl 0.71%, ex value $756M, silver 0.62% & export value $756m, Telephone 4.5% & export value $ 5.45B, Computers 2.4% export value $ 2.92B,Office machine part 2.3%, export value $ 4.15B,Integrated circuits 2.5% & export value $ 3.05B, others clocks & watches 0.11% & export value$ 133M, Cars 0.48% & export value $585m. Many other things they export like fabrics, glues, scrap coppers, bicycle, motorcycle, leather footwear etc.
Import: Hong Kong is the 6th largest importer in the world of 2016 & Total import value in 2016 was $550B. In recent five years Hong Kong has increased their import. Their leading in import is Integrated circuits 20%, which import value is $ 112B. The second one is telephone 7.4%, import value is $40.7B. Broadcasting equipment 6.3%, import value is $34.80. Computer 4.4 %, import value is $24.1B. Though Hong Kong export gold, diamond & jewelry but they also import Gold (5.4%, import value 29.9B), Diamond (3.5%, Import value $19.3B), jewelry (2.1%, import value $11.8B). More import items are LCDs (1.8%,value $10B), Office machine (2.6%, Value 14.1B),Printed Circuit (1.7%, value $9.09B),Electrical item (1.4%, value $7.87B).Others Women undergarments, non-knit women’s coat, raw plastic sheeting, cars, refined petroleum, apples & pears, paper containers, metal picking preparations, models & staffed animals, cast or rolled glue, other printed materials etc.
Trade Balance & Forecast: Hong Kong had a negative trade balance recent last 2years $429B in net imports (4). Its actual balance of trade on 2018 is (-43250.00) HKD million forecasting for 2020 will be (-47000.00) HKD million. Government debt to GDP of 2018 is 38.40 % and forecasting for the 2020will be 31%. Recent interest rate is 2.25% and it will be 3.35 % in 2020. Now a day’s market currency of Hong Kong is 7.85 and it will be remain 7.84 in 2020. Actual Stock market point of 2018 is 28707.91 and it will be low in 2020 at the point of 20170. Government bond in 10years 2.22% and forecasting for the 2020 will be 4.04% GDP from agriculture of 2018 is 432.00HKD million and it will be increase in 2020 at 494.00HKD million. Actual GDP in manufacture in 2018 is 6344.00 HKD million and it will be increase in 2020 at 7485 HKD million. GDP from public administration is 110468.00HKD million and forecasted for the 2020 is123847.00HKD million. GDP from service market actual rate is 5, 74,889.00 in 2018 and will be 6, 80,542.00 HKD million in 2020. Money interest rate in 2018 is 2.25% and it is forecasted that it will be increase 1% in 2020 at 3.25%. Foreign export reserve in 2018 is 4, 31,900.00 USD million and will be increased in 2020 as forecast at 5.3482 USD million dollars. Loans in private sector of Hong Kong in 2018 are 97, 22,738.30 HKD million dollars and in 2020 it will be 112, 04,405.00 HKD million dollars. Hong Kong external debt is 127, 75,626.00 HKD million dollars and it will be high in 2020 at 133, 18,685.00 HKD million dollars. Government debt to GDP of Hong Kong is 38.40% in 2018 and it will be less in 2020 at 31% (10).
From the all point of view as discussed in the report is noticed that Hong Kong have bearing a sluggish trade balance. In accordance Hong Kong government try their best to recovering their economic condition and applied recovery strategy for sustainable way. Though Hong Kong is good in agriculture and has a large income from that they can give more focus on their agriculture. Moreover Hong Kong foreign export reserved 4.31 USD million dollars and it is forecasted for the 2020 is 5.34 USD million dollars. So they can also concentrate on foreign export business and will increase their GDP growth.

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