With its strategic location on the doorstep of the Mainland and in a time zone that bridges the gap between Asia and Europe, the Hong Kong Special Administrative Region (HKSAR) serves as a global centre for trade, finance, business and communications.
Hong Kong is characterised by a high degree of internationalisation, a business-friendly environment, the rule of law, free trade, a free flow of information, open and fair competition, a well-established and comprehensive financial network, a superb transport and communications infrastructure, sophisticated support services, and a well-educated workforce complemented by a pool of efficient and enterprising entrepreneurs.
It has one of the busiest airports in terms of number of passengers and volume of international cargo handled and one of the busiest container ports. Added to these are substantial foreign exchange reserves, a fully convertible and stable currency, prudent fiscal reserves and a simple tax system with a low rate.
Hong Kong's institutional strength continues to be well recognised. In January 2019, Hong Kong was ranked as the world's freest economy by the Heritage Foundation for the 25th year in a row. A similar study by the US-based Cato Institute and Canada's Fraser Institute has ranked Hong Kong as the world's freest economy since 1970. Also, Hong Kong was ranked as the world's second most competitive economy after the USA in the International Institute for Management Development (IMD) World Competitiveness Yearbook 2018. Moreover, Hong Kong was ranked the fifth easiest place to do business by the World Bank in its Doing Business 2018 report, being in a top-five position persistently in the past decade amid the Government's incessant efforts in business facilitation.
Hong Kong is the world's most services-oriented economy, with the services sector accounting for more than 90% of GDP.
Hong Kong is the world's 7th largest trading entity and the world's 15th largest exporter of commercial services (World Trade Organization ranking, 2017).
Hong Kong was the third largest recipient of foreign direct investment (FDI) in the world (US$85 billion) after the US and Mainland China in 2017, according to the UNCTAD World Investment Report 2018.
Hong Kong ranks third in the Global Financial Centres Index (March 2019), after London and New York.
Hong Kong Exchanges and Clearing (HKEx) has been among the top five global IPO listing markets for the past decade, ranking first from 2009 to 2011, and in 2015 and 2016. In 2017 HKEx ranked fourth in the world and second in Asia (with IPOs raising US$16.5 billion). In 2018, it ranked 1st in the world, raising US$36,628 billion.
Around 75% of the world's Renminbi (RMB) payment transactions are processed via Hong Kong.
If you want to know more about Hong Kong's economy, please click here.
For more information on Hong Kong's Budget for 2017-2018, click here.