Hong Kong 

Hong Kong country policy

Policy established 01 May 2012

• Early warning signal 1500 mln euro
• - of which was used as at 2012-04-30 0 mln euro
• Open zonder beperkingen

Country class: 1

Hong Kong country facts

Atradius Dutch State Business Economic Research

Country Report last updated :  8 June 2010  
Country :  HONG KONG  

Political Situation

Stable, No Democratic Developments

Head of state
Chief executive Donald Tsang (since June 2005)

Form of government
Rule by Chief executive and Executive Council (cabinet) and elected Legislative Council (parliament, which has limited powers) under auspices of China. No universal suffrage.

Internal Economic Situation
Economic Recovery In 2010

General situation
Economic recovery this year to 5.6% after a contraction of 2.6% in 2009. Especially the sharp rebound of the economy in China will support the economy. Exports, investments and private consumption contribute to the economic growth. Expected is a deceleration to 4.4% in line with a lower economic growth in China. Inflation is moderate with an expected 2% this year, in comparison with 0.5% in 2009. There is a Closer Economic Partnership Agreement (CEPA) in place. Local companies have privileged access to the mainland and China people can travel to Hong Kong without any restrictions. The Hong Kong economy is closely integrated with mainland China and therefore policy developments in China will have an impact on HK economy. 

External Economic Situation
Good, Comfortable Reserve Position

Main sources of foreign exchange
International trade and services, financial transactions.

Main foreign markets
PR China (45%), US (16%), Japan (5%).

Main expenses of foreign exchange
Capital goods (machines and transport equipment), raw materials and semi-manufactures.

Balance of payments
HK remains the most important supplier of services to mainland China.