Economy And Policies Of Hong Kong

2398 words - 10 pages

This paper analyses the economy of Hong Kong mainly through the perspective of GDP, and then analyses its fiscal and monetary policies which are implemented by Hong Kong government and its Monetary Authority.

Hong Kong is one of the world’s leading financial centers and it is an efficiency service-oriented free market economy. Hong Kong’s economic freedom score is 90.1 on a 100-point scale, making it the top-rated economy in the Index for the 20th consecutive year (, 2014). Hong Kong’s economy is normally characterized by its low taxation, light regulation and well established international trading environment.

Current Position of Economy

Diagram 1. The Hong Kong economy picked up to moderate growth in 2013
As the diagram above reveals, in the past 5 years, Hong Kong’s economic performance experienced two major declines. The worse one was during the Subprime Mortgage Crisis started from 2007, Hong Kong’s rate of change in real terms decreased significantly compared to its growth trend in the previous years. However, compared to the other countries, such as the US and UK, it was less cyclical affected and the recovery in Hong Kong economy had a better performance. Another decline occurred in the year of 2012, after few years of the recession, and the reasons of that down-slope will be provided below.

According to Diagram 1, Hong Kong’s economic performance has kept a gradual growth in the year of 2013, with real GDP expanding moderately by 2.9%, up from 1.5% in 2012, keeping the labour market in a state of full employment (Hong Kong Economy Report, 2014). As a whole, in year 2013 both the external and internal sector of Hong Kong performed better than the year of 2012. With regards to the overseas sector, total exports are compiled under the GDP accounting framework grew by 6.7% in real terms, after the slight growth of 1.8% in 2012 (Hong Kong Economy Report, 2014). Firms which are held by the domestic sector provided a dumping towards the external headwinds that exist in the previous years (GOVHK, 2014). In addition, with comparing other economic markets, such as asset markets, labour markets, etc. to 2012, the whole performance was improved and it went along with a positive trend.

Current GDP Analysis
The following table is the GDP figures taken from the Hong Kong Census and Statistics Department and IMF.

Quarter 1Q2013 2Q2013 3Q2013 4Q2013 Whole Year
GDP% 2.8% 3.3% 2.9% 3.0% 2.9%
Diagram 2. Gross Domestic Product (Quarterly)

Diagram 3. Hong Kong Main Economic Indicator

Diagram 4. Hong Kong Private Consumption Expenditure

Diagram 5. Hong Kong GDP GAP
According to the Hong Kong's Financial Secretary John Tsang’s budget speech on 26th Feb 2014, the 2.9% economic growth in 2013 is a "marked improvement" over 1.5% in 2012. (Hong Kong Budget Speech 2013-2014)

Although Hong Kong achieved a growth in GDP compared to 2012, the economy of Hong Kong still had a negative GDP gap in 2013. It can also be defined as a deflationary...

Find Another Essay On Economy and Policies of Hong Kong

History of Hong Kong Essay

782 words - 3 pages . This is a more active stance on the part of the government towards nurturing tourism growth is essential.Once I finished this book, I found out that economy has so big impact on tourism and I finally discovered that how are they interacted to each other. So if we want our society to flourish, we should set out the policies the Governemtn can take to further promote tourism in Hong Kong. Hong Kong needs to adopt an integrative mindset in its

The Industrialization and Social Developments of Hong Kong

1748 words - 7 pages The industrialization and social developments in Hong Kong are dated back during the British imperial rule when they started introducing various policies that revolutionized industrialization and social developments in the country. The influence of the British on China dates back the 18th century, when the British traders started enforcing a relaxation of trade policies and practices that were adopted by the Chinese government. This culminated

Hong Kong and Malaysia Presentation

745 words - 3 pages by Monsoons from late May to September Slide 8 - Industries o Hong Kong ‘s economy is mainly dominated by the four pillar service industries. They are : banking & financial services, trading and logistics, tourism and professional services (such as services in law, accounting, engineering, architectural activities etc). o Unlike Hong Kong, Malaysia has a lot of natural resources. o Malaysia is the 2nd largest producer of palm oil in the

British Colonization of Hong Kong

1626 words - 7 pages The first Opium War took place between the British and the Qing Empire in 1839 until 1842. The British viewed the war to be caused by the Qing emperor and its officials’ refusal to permit the importation of opium into its territory. In the war, Britain defeated the Qing. (The Earth and Its People 540-543) Now, you might wonder what does the Opium War have anything to do with Hong Kong; however, it was during the war, that Britain first occupied

The Transformation of Hong Kong

1336 words - 5 pages The Transformation of Hong Kong A drastic change came over Hong Kong during my supposed three month long business trip. This was not my first time in Hong Kong since I work for Walt Disney Imagineering and my team of engineers had been spending years planning the creation of the fourth Disney resort in Hong Kong. I had arrived in Hong Kong in mid-February 2003. My coworkers and I were staying at the Island Shangri-La which is located in

History of Hong Kong Cinema

2110 words - 8 pages The History of Hong Kong Cinema"What do swordplay, gunplay, melodrama and ghosts have in common? Hong Kong cinema," according to Film Studies Professor David Cook (Cook, 1999). Fighting with swords and guns, exaggerated drama and a bent for the supernatural--ghosts, vampires and the spirits of dead ancestors--are four basic ingredients in the last 20 years of films from Hong Kong.The history of film is an important one today. Many people in our

Hong Kong Before and After 1997

2076 words - 9 pages the function of constructing policies, keep an eye on the government daily working and affairs. The citizens should be more active and raise the awareness to political issues, to be the mainstay of the Hong Kong development in the future.

The Management of 21st Century: Hong Kong

838 words - 3 pages job more efficiently. However, the step of incentive system in Hong Kong is very slow when compare with America. Therefore, the management of Hong Kong must concern about the incentive system. In conclusion, Hong Kong management will be mostly affected by the economy of Hong Kong. Also, China is the most important country, which can affect our economy and company management. Moreover, Hong Kong companies can learn the management of

Balancing Democracy and Reality in Hong Kong

3409 words - 14 pages mechanism (Li, 2012). In Hong Kong, the structure of the executive is clearly stated in the Basic Law (1990) that it is headed by the CE which follows the governing ideology of executive-led system. The CE is supported by a group of principle officials who are responsible for formulating policies and supervising those bureaus and departments they are in charge of while a large batch of civil servants bears the duties of enforcing and implementing

Understanding Social Welfare of Hong Kong

1450 words - 6 pages Understanding Social Welfare of Hong Kong Hong Kong has a unique history, governing system and economy. These three unique features are crucial to an understanding of the social welfare in the territory. In this essay, I will illustrate the development of social welfare in Hong Kong during different periods. At the end of the paper, I would take a look at the changing attitude of Hong Kong people towards the social

The Fall of Hong Kong December 1941

794 words - 3 pages Punjabis had all their experienced officers and troops in Europe and India, strengthening Hong Kong with hastily trained troops. The last group defending Hong Kong were the Hong Kong Volunteer Corps, they had 1000 men that were too old for the professional army but were amazingly enthusiastic to fight in defence of their home and they knew the local area well. Adding on to all that, rumours were passed around us about how the Japanese could not see

Similar Essays

How Does Education Affect The Economy Of Hong Kong And Kenya?

1444 words - 6 pages economy have some sort of relationship?’ and ‘how does education affect the economy?’ To figure it out, I minimize my topic area to Hong Kong and Kenya, and finding the answer of my question by analyzing and comparing the educational system and economic condition in those two countries. I choose Kenya as my global perspective case study. Kenya uses a special educational system called the 8-4-4 system, which was launched in 1985. This basically

How Has Tourism Influenced The Economy Of Hong Kong Since 2003

2765 words - 11 pages Vocational Rehabilitation PAGE 1 Running Head: VOCATIONAL REHABILITATION FOR PEOPLE WITH MENTAL ILLNESS IN THE UKVocational Rehabilitation For People With Mental Illness In The UK[The Writer's Name][The Name of the Institution]Vocational rehabilitation for people with mental illness in the UK. How occupational therapy services can get involved and helpIntroductionAccording to the expert analysis in lots of ways the proposed Health Care

Toronto And Hong Kong Essay

579 words - 2 pages When it comes to making a decision upon where to live, many people would often decide to look at the most suitable places on earth that qualifies for their expectations of living standards. Some of the factors that may affect the outcome of the decision are education, government, economy, climate and other things that have an impact on our living conditions. Toronto and Hong Kong are in fact two of the top ten ranked world cities for both

Hong Kong And Singapore Essay

757 words - 4 pages argument towards their favor. Some scholars argue for low fertility rate as an increasingly troublesome phenomenon for the Hong Kong economy going on into the future. Hong Kong’s fertility rate is one of the lowest in the world, and remains far below the replenishment rate. If fertility rate were low, then the government would inevitably have to divert resources away from long-term economic development projects and towards healthcare for the