HONG KONG ECONOMY PROFILE
Economic Indicators
Population
:
Gross Domestic Product (US$):
Real GDP Growth Rate
:
2.8%
GDP Per Capita
(US$):
12,228
Inflation
9.8%
Unemployment
1.3%
1990
Total Exports
(US$):
82.04 bn. (+12%)
Domestic Exports
(US$):
28.96 bn. (+ 1%)
Re-exports
(US$):
53.08 bn. (+20%)
HONG K ONG
ECONOMY
PROFILE
1990
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1991
5.80 million MNo3 040 86 million*
70.9 billion LCE
78.6 billion*
23.!AN 49:2 13,400*
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12%*
1.9% (Sep-Nov)
Jan-Nov-1994.
88.60 bn. (+19%) 26.76 bn. (+ 1%)
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61.84 bn. (+28%)
Imports
(US$): 82.38 bn. (+14%)
Total Trade
Trade Balance
(US$): 164.42 bn. (+13%) (US$): -0.34 bn.
90.00 bn. (+20%) 178.60 bn. (+19%)
-1.40 bn.
* Official forecasts
Recent Trade Developments
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-
After rising by 1% in 1990, Hong Kong's domestic exports increased by another 1% in Jan-Nov 1991. While exports to the U.S. (-8%) declined in Jan-Oct, sales to W. Europe (+7%) and Asia (+10%) increased moderately. Re-exports increased substantially by 28% in Jan-Nov 1991, compared with a 20% growth in 1990. This was supported mainly by Hong Kong's cross-border manufacturing in Guangdong. (25,000 enterprises and 3 million workers in Guangdong are producing for Hong Kong companies, of which 19,000 enterprises and 2 mm. workers are in the processing business.) Over 80% of Hong Kong's re-exports is either originated from or destined for China. Since 1990, there has been pressure in the U.S. for the withdrawal of Most Favoured Nation (MFN) status for China, which is important to Hong Kong's manufacturing activity in China and its trade outlook. The U.S. President decided to renew China's MFN status unconditionally in May 1991. While the House and the Senate did not agree with the President's decision, they failed to issue a joint resolution before the deadline (early Sept.) to override it. China's MFN status is thus preserved till June 1992.
The U.S. administration ordered a full-scale investigation into China's import restrictions in mid-October 1991 under U.S. law Section 301. Subject to China's response, it may impose retaliatory measures in October 1992. This may affect Hong Kong re-exports. Separately, China has been accused of insufficient protection of intellectual property rights under Special 301. Pending outcome of further U.S./China negotiations, U.S. tariffs may be raised for specific Chinese products in early 1992.
The E.E.C. made a number of allegations against Hong Kong on dumping in the last two years. Many of them were dropped later. Today, anti-dumping duty only applies to Hong Kong video tapes (up to 21.9%) and small screen colour T.V. sets (2.1-4.8%) in the E.E.C.
The U.S. meanwhile has imposed an anti-dumping duty of 3.7% on Hong Kong's photo albums and filler pages and 5.86% on Hong Kong's acrylic sweaters.
In Jun 1991 Mexico initiated an anti-dumping investigation into porcelain kitchenware from Hong Kong, and in Oct it increased the anti-dumping duty on Hong Kong's denim products from US$57¢/kg to US$1/kg.
Import liberalization prevailing in Japan, Taiwan and ASEAN countries has opened up new dimensions of trade. Economic reforms in East Europe have also unfolded new, albeit gradual, opportunities. Some Latin American countries (e.g. Mexico and Venezuela) have also been reducing import restrictions.
Economic Background
The growth of Hong Kong's economy remained modest at 2.8% in 1990, owing to the slowdown in domestic exports, tight capacity constraints and sluggish private consumption. In the first three quarters of 1991, GDP rose by about 4%; official forecast for the whole year was also revised upwards in August to 4%, based on the robust performance of the European market, improved sales to China, and dynamic growth in Asia.
Consumer prices rose by an annualised rate of 11% in Nov 1991. On 6 Nov, the government unveiled a package of regulatory measures, aimed mainly at property speculation, to curb inflation.
Labour shortage has slightly alleviated this year as unemployment rate increased from last year's 1.3% to 1.9% in Sep-Nov 91. To ease the territory's tight labour market, the government has proposed a scheme to import 25,000 workers in 1992. Imported workers will be permitted to stay in the territory for up to six years.
Research Department, Hong Kong Trade Development Council
36th - 39th Floor, Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong. Tel : 833 4333 Fax: 824 0249 Cable: CONOTRAD HONG KONG Telex : 73595 CONHK HX
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