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by 
The Macanese Republic of The Shining Purple Light.
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463 reads.
Economy | Republic of Hong Kong
東方之珠 | Pearl of the Orient
The Financial District of Hong Kong
Knit Sweaters,
Broadcasting Accessories,
Non-Knit Women's Suits,
Integrated Circuits,
Office Machines Parts,
Computers,
Radio Receivers,
Non-Knit Men's Suits,
Non-Knit Men's Shirts,
Heavy Pure Woven Cotton.
Korea,
United States,
United Kingdom,
Singapore,
The Netherlands.
Gold,
Leather Footwear,
Refined Petroleum,
Computers,
Radio Receivers,
Cars,
Video Displays,
Broadcasting Equipment,
Synthetic Filament Yarn Woven Fabric,
Integrated Circuits.
Korea,
Japan,
Malaysia,
United Kingdom,
United States.
OVERVIEW — Hong Kong's Economy
As one of the world's leading international financial centres, Hong Kong's service-oriented economy is characterized by its low taxation, almost free port trade and well established international financial market. Its currency, called the Hong Kong dollar, is legally issued by three major international commercial banks, and pegged to the US dollar. Interest rates are determined by the individual banks in Hong Kong to ensure they are market driven. There is no officially recognised central banking system, although the Hong Kong Monetary Authority functions as a financial regulatory authority.
According to the Index of Economic Freedom, Hong Kong has had the highest degree of economic freedom in the world since the inception of the index in 1995. Its economy is governed under positive non-interventionism, and is highly dependent on international trade and finance. For this reason it is regarded as among the most favorable places to start a company.
Hong Kong's economic strengths include a sound banking system, virtually no public debt, a strong legal system, ample foreign exchange reserves, rigorous anti-corruption measures, and close economic ties with other Asian nations. The Hong Kong Stock Exchange is a favourable destination for international firms and firms from mainland China to be listed due to Hong Kong's highly internationalised and modernised financial industry along with its capital market in Asia, its size, regulations and available financial tools, which are comparable to London and New York.
Hong Kong's gross domestic product has grown 175 times between 1961 and 1995. Also, the GDP per capita rose by 84 times within the same time frame. By the late 20th century, Hong Kong was the seventh largest port in the world and second only to New York and Rotterdam in terms of container throughput. Hong Kong is a full Member of World Trade Organization. The Kwai Chung container complex was the largest in Asia; while Hong Kong shipping owners were second only to those of Greece in terms of total tonnage holdings in the world.
Hong Kong has also had an abundant supply of labour, primarily in the newly immigrated Hmong population. A skilled labour force coupled with the adoption of modern British/Western business methods and technology ensured that opportunities for external trade, investment, and recruitment were maximised.
Due to recent attacks against Hong Kong's sovereignty and economic barriers with Mainland China, Hong Kong has sought new trading partners through Korea and Malaysia. Even with these new trading partners however, Hong Kong has entered a temporary recession due to the loss of trade and required restructuring of existing trade networks. This has also resulted in deficit spending by the Government, in an attempt to stabilize the economy, along with paying for it's progressive agenda.
Budget
Expenditures - $35,396,471,200
- Ministry for Education - $7,242,038,200
Ministry for Security - $6,143,150,200
Ministry for Labour and Welfare - $5,872,611,500
Ministry for Transport and Housing - $5,652,229,230
Ministry for Food and Health - $4,968,152,900
Ministry for the Environment - $1,700,636,940
Ministry for the Economy - $1,356,687,900
Ministry for Home Affairs - $1,008,916,050
Ministry for Foreign Affairs - $624,827,100
National Assembly - $430,392,460
Ministry for Justice - $382,063,690
Ministry for the Treasury - $9,230,000
Office of the President - $5,535,030
Revenues - $32,627,615,880
- Profits Tax - $10,188,980,890
Stamp Duties - $5,859,872,610
Salaries Tax - $3,939,808,920
Goods and Services Tax - $3,430,945,000
Properties and Investment - $3,194,114,200
General Rates - $1,419,235,670
Bets and Sweeps Tax - $1,351,082,800
Fees and Charges - $1,032,628,980
Duties - $711,129,940
Motor Vehicle Taxes - $567,563,500
Loans, Reimbursements, Contributions and Other Receipts - $325,910,000
Utilities - $280,722,740
Royalties and Concessions - $234,205,920
Fines, Forfeitures and Penalties - $91,414,710
Deficit - -$2,768,855,320
Tax Rates
Profits Tax
- Corporations : 16.5%
Non-Corporate Persons : 15.0%
Salaries Tax
- Under $8,000 : 2.0%
$8,001-$16,000 : 6.0%
$16,001-$32,000 : 10.0%
$32,001-$64,000 : 14.0%
$64,001-$128,000 : 18.0%
$128,001-$256,000 : 22.0%
$256,001-$512,000 : 26.0%
$512,001-$1,024,000 : 30.0%
Above $1,024,000 : 34.0%
Goods and Services Tax
- 5.0%
Mandatory Provident Fund Contribution
- 5.0%
