ENG-2010 — Page 87

The Economy 45

The size of the Hong Kong economy more than doubled in the past two decades, its GDP expanding at an average annual rate of 4 per cent in real terms, surpassing the world economy's growth of 3.4 per cent. Over the same period, Hong Kong's per capita GDP also rose significantly, posting an average annual growth rate of 2.9 per cent in real terms. At US$31,800, Hong Kong's per capita GDP was one of the highest in Asia in 2010 (Chart 2).

Chart 2

Gross Domestic Product

Index (1990 = 100)

US$ ('000)

35

35

250

Real GDP (left scale)

200

150

100

50

• Per capita GDP at current market prices (right scale)

- 5

30

25

20

15

10

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Over the past two decades, the Hong Kong economy grew by an average of 4 per cent in real terms, outpacing the 3.4 per cent growth for the world economy. Hong Kong's per capita GDP is among the highest in Asia.

Under the growing influence of globalisation and bolstered by deepening regional integration and vibrant growth in Asia, Hong Kong's trade linkages have risen continuously. Trade in goods expanded almost four times in real terms over the past two decades, and trade in services almost three times. In 2010, the total value of visible trade (comprising re-exports, domestic exports and imports of goods) reached $6,456 billion, equivalent to 369 per cent of GDP. This was considerably larger than the ratios of 212 per cent in 1990 and 244 per cent in 2000. Including the value of exports and imports of services, the ratio of total trade to GDP was even higher, at 440 per cent in 2010, compared to 253 per cent in 1990 and 282 per cent in 2000.

The stock of inward direct investment in Hong Kong was significant, at $8,533 billion in market value at the end of 2010, equivalent to 488 per cent of GDP. It served as another strong indicator of Hong Kong's increasingly international focus. Hong Kong is among the most preferred destinations for inward direct investment in Asia.