ss: PSC 464, Box 30, FPO AP 96522-0002
telephone: [852] 2523-9011
FAX: [852] 2845-1598

Flag description: red with a stylized, white, five-petal bauhinia
flower in the center

@Hong Kong:Economy

Economy-overview: Hong Kong has a bustling free market economy highly
dependent on international trade. Natural resources are limited, and
food and raw materials must be imported. Indeed, imports and exports,
including reexports, each exceed GDP in dollar value. Real GDP growth
averaged a 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, 4.7% in 1996, and an estimated 5.5% in 1997. A shortage
of labor continues to put upward pressure on prices and the cost of
living. Even before Hong Kong reverted to Chinese administration on 1
July 1997 it had extensive trade and investment ties with China.

GDP: purchasing power parity-$175.2 billion (1997 est.)

GDP-real growth rate: 5.5% (1997 est.)

GDP-per capita: purchasing power parity-$26,800 (1997 est.)

GDP-composition by sector:
agriculture: 0.1%
industry: 16.1%
services: 83.8% (1996 est.)

Inflation rate-consumer price index: 5.1% (1997 est.)

Labor force:
total: 3.183 million (1997)
by occupation: wholesale and retail trade, restaurants, and hotels
32.4%, social services 9.9%, manufacturing 9.9%, financing, insurance,
and real estate 13.0%, transport and communications 5.7%, construction
2.6%, other 26.5% (June 1997)

Unemployment rate: 3.1% (1996 est.)

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

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

Industrial production growth rate: -3.2% (1997 est.)

Electricity-capacity: 11.3 million kW (1996)

Electricity-production: 28 billion kWh (1996)

Electricity-consumption per capita: 3,968 kWh (1995)

Agriculture-products: fresh vegetables; poultry

Exports:
total value: $180.7 billion (including reexports; f.o.b., 1996)
commodities: clothing, textiles, yarn and fabric, footwear, electrical
appliances, watches and clocks, toys
partners: China 34%, US 21%, Japan 7%, Germany 4%, UK 3% (1996)

Imports:
total value: $198.6 billion (c.i.f., 1996)
commodities: foodstuffs, transport equipment, raw materials,
semimanufactures, petroleum; a large share is reexported
partners: China 37%, Japan 14%, Taiwan 8%, US 8%