BRIEF 8
BRIEF FOR MINISTER FOR TRADE'S VISIT TO HONG KONG
30 AUGUST 5 SEPTEMBER 1980
THE HONG KONG ECONOMY
1
In
Since 1950 Hong Kong has been transformed from a trading
entrepot into a major industrial, financial and communications
centre, with one of the highest standards of living in Asia.
the virtual absence of natural resources, this success has been
largely due to capitalising on the advantages of a versatile and
industrious workforce, a highly developed and sophisticated
commercial structure, a generally favourable investment climate
and a consistent pursuit of free trade and economic policies.
2
The Government sees its major role as providing a stable
framwork in which private enterprises can function efficiently.
This includes for example, the formation of land, road construction
and the provision of a major social services programme, including
housing which has been set back by the last recession. Government
intervenes in economic processes only when very serious economic or
social developments occur; other than these, the private sector's
economic activities are neither protected nor subsidised.
3
Hong Kong has made an impressive recovery from the recession
of 1974-75, with very rapid economic growth (over 10% per annum)
during the past four years, based on a vigorous export sector and
a boom in domestic demand, and every year from 1976-1979 it recorded
double digit growth in Gross Domestic Product. The average for the
four years was 12.5%. This year growth is forecast to fall to
around 9%, but that is still up to the pre-1974 average at a time
when world growth rates are significantly below the 1974 levels.