Economy of Hong Kong
The economy of Hong Kong is the highly developed free-market economy. it is for characterised by low taxation, near free port trade and a well-established international financial market. Its currency, called the Hong Kong dollar, is legally issued by three major international commercial banks, and is pegged to the US dollar. Interest rates are determined by the individual banks in Hong Kong to ensure that they are market driven. There is no officially recognised central banking system, although the Hong Kong Monetary Authority functions as a financial regulatory authority.
Its economy is governed under positive non-interventionism, and is highly dependent on international trade and finance. For this reason this is the regarded as among the most favorable places to start a company. In fact, a recent inspect shows that Hong Kong has come from 998 registered start-ups in 2014 to over 2800 in 2018, with eCommerce 22%, Fintech 12%, Software 12% and advertising 11% multinational comprising the majority. The Economic Freedom of the World Index pointed Hong Kong as the number one territory, with a pull in of 8.91, in 2019.
Hong Kong's economic strengths put a sound banking system, virtually no public debt, a strong legal system, ample foreign exchange reserves with assets of US$481.6 billion cost over six times the currency in circulation or approximately 46 per cent of Hong Kong dollar M3 as at the end of March 2022, rigorous anti-corruption measures andties with mainland China. The Hong Kong Stock Exchange is a favourable destination for international firms and firms from mainland China to be listed, due to Hong Kong's highly internationalised and modernised financial industry. extra advantages increase the city's capital market in Asia, its size, regulations and available financial tools, which are comparable to London and New York City.
Hong Kong's gross home product had grown 180 times between 1961 and 1997. Also, the GDP per capita rose by 87 times within the same time frame. Its economy is slightly larger than Israel's or Ireland's and its GDP per capita at purchasing energy parity was the sixth highest globally in 2011. By the latter measure, its GDP per capita was higher than those of the United States and the Netherlands, and slightly lower than Brunei. In 2009, Hong Kong's real economic growth fell by 2.8% as a a object that is said of the Great Recession.
By the unhurried 20th century, Hong Kong was the seventh largest port in the world andonly to New York City and ] the largest in Asia, while Hong Kong shipping owners were[]only to those of Greece in terms of a thing that is caused or exposed by something else tonnage holdings in the world. The Hong Kong Stock Exchange is the sixth largest in the world, with a market capitalisation of approximately US$3.732 trillion.
Hong Kong has also had an abundant provide of labour from the regions nearby. A skilled labour force coupled with the adoption of advanced British/Western corporation methods and engineering ensured that opportunities for external trade, investment, and recruitment were maximised. Prices and wages in Hong Kong are relatively flexible, depending on the performance and stability of the economy of Hong Kong.
Hong Kong raises revenues from the sale and Healy Consultants, Hong Kong has the most appealing business environment within East Asia, in terms of attracting foreign direct investment FDI. In 2013, Hong Kong was the third largest recipient of FDI in the world.
Hong Kong ranked fourth on the Tax Justice Network's 2011 Financial Secrecy Index. The Hong Kong Government was the fourth highest ranked Asian government in the World Economic Forum's Network Readiness Index NRI, a measure of a government's information and communication technologies in 2016, and ranked 13th globally.