BUSAAF
The Hong Kong Economy
1.
Much of Hong Kong is unproductive mountainland. About 16%, including areas reclaimed from the sea, is used for residential and industrial development. Only 9.4% of the land is farmed, producing vegetables, fruit, flowers, freshwater fish, pigs and poultry.
There is a considerable fishing fleet of 5,000 boats, meeting over 90% of local demand for fish. Less than 3% of the population engage in farming or fishing.
2. Hong Kong's principal natural asset is its sheltered harbour, the only developed deep water port on the China coast. From the establishment of Hong Kong as a centre for Britain's Far East trade in 1841 up to about 1950, trade and commerce was the main economic activity. Then, when the Korean War brought a slump in trade with China, it became necessary to develop other sources of income, particularly as the population had expanded rapidly with the influx of immigrants from China at the time of the Communist take-over. Hong Kong therefore turned to manufacturing, starting with textiles and clothing (which remain the dominant industries), but diversifying later into many other products, including plastics, electrical and electronic goods, scientific instruments, watches and photographic and optical equipment. The entrepôt trade with China has re-emerged as a significant proportion of Hong Kong's trade in the last few years, and service industries have expanded rapidly as
onsequence of rapidly growing domestic incomes and Hong Kong's elopment as an important international financial and tourist
centre
3. The management of Hong Kong's economy is based on commitment to market mechanism and free enterprise. GDP grew in real terms by 11% in 1986, and 14% in 1987 and 7.5% in 1988. 6% growth is projected for 1989. Average growth in real terms over the last 20 years is about 8%. The per capita GDP of about US$9,605 in 1988 is among the highest in Asia, second to Japan and comparable with Singapore. It is expected to rise to US$11,000 in 1989. Domestic exports increased in real terms by 16% in 1986, by 23% in 1987 and 9% in 1988. Economy remains bouyant but some slowdown in the rate of growth of domestic exports occurred since the third quarter of 1987.