THE ECONOMY
current market prices. The latest comparison showed that per capita GDP in Hong Kong was amongst the highest in Asia, next only to Japan.
Chart 1:
Gross Domestic Product (year-on-year rate of change in real terms)
15
10
เค
5
0
-5
Per cent
GDP
Per capita GDP
-10
1979
1981
1983
1985
1987 1989
1991
1993
1995
1997
1999
44
Over the past two decades, the Hong Kong economy has been expanding rapidly, with GDP growing by 5% per annum and per capita GDP by 4% per annum in real terms. In 1999, GDP revived to a 2.9% growth in real terms, in stark contrast to the 5.1% decline in 1998.
Trade in goods and services expanded by about nine times and four times respectively over the past two decades. Reflecting the highly externally-oriented nature of the Hong Kong economy, the total value of visible trade (comprising re-exports, domestic exports and imports), at $2,745 billion in 1999, amounted to 223 per cent of the GDP. This was higher than the corresponding ratios of 143 per cent in 1970, 148 per cent in 1980, and 221 per cent in 1990. If the value of exports and imports of services is also taken into account, the ratio is even higher, at 260 in 1999, as compared to 181 per cent in both 1970 and 1980, and 260 per cent in 1990.
per cent
In 1998, the Gross National Product (GNP), comprising GDP and net external factor income flows, contracted by 3.3 per cent in value terms to $1,290 billion, upon the repercussions of the regional financial turmoil. Yet this was smaller than the concurrent decline of 4.3 per cent in GDP in value terms, due to a net factor income inflow to Hong Kong equivalent to about 1.9 per cent of GDP in that year. Reflecting the high degree of external orientation of the Hong Kong economy, both inflows and outflows of external factor income were very substantial, estimated at $383 billion and $360 billion respectively, amounting to 30 per cent and 28 per cent of GNP.