1. BACKGROUND INFORMATION ON HONG KONG
Economics and Finance
(a)
(b)
(c)
(d)
(e)
(£)
(g)
(h)
(i)
GDP grew by 11 per cent in real terms in 1986 and by an estimated 12 per cent in 1987. Growth in real terms over the last 20 years has averaged 7.9 per cent per annum.
Per capita GDP of US$6,800 in 1986 (US$370 at current prices in 1961) is amongst the highest in Asia, second to Japan and roughly the same as Singapore which has less than half the population.
Investment in plant and machinery increased by 10 per cent in real terms in 1986. The period 1984-6 saw the highest average annual investment of any three years in our history.
Specifically, retained imports of industrial machinery for manufacturing use, which is an important indicator of investment in the manufacturing sector, increased by 26 per cent in real terms in 1986. The average annual increase for the three years 1984-6 was 15 per cent.
Domestic exports increased by 16 per cent in real terms in 1986 and increased by 27 per cent in real terms in the first half of 1987 as compared with the same period in 1986.
Re-exports increased by 14 per cent in real terms in 1986 and increased by 49 per cent in the first half of 1987 as compared with the same period in 1986.
Home Ownership flats (13,000) put on the market by the Government in 1986 were over-subscribed by more than 18 times.
Unemployment rate in the second quarter of 1987 at a historic low of 1.8 per cent.
Low tax rates ; a maximum of 16.5 per cent for salaries and 18 per cent profits. Only 550,000 people pay salaries tax. The threshold for a married man with two children is $89,000
(£6,100).
Social Indicators
(a) Free education for every child for 9 years. Attendance until age 15 or completion of Form 3 is compulsory.
(b)
A public medical service with nominal charges.
(c)
An infant mortality rate of 7.5 per thousand, which is amongst the lowest in the world.