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Hong Kong
The economy continue to be the primary forces fueling economic
growth this year.
Situated at the southeastern tip
of China, Hong Kong According to the UNCTAD World Investment
is at the center of East Asia. Since its return to Report 2023, global FDI inflows to Hong Kong
Chinese mainland in 1997, it has followed the “one amounted to US$117.7 billion in 2022, ranked
country, two systems” policy under the Basic Law. fourth globally, behind the United States (US$285.1
Hong Kong is considered one of the world’s freest billion), Chinese mainland (US$189.1 billion) and
economies, and under its laissez-faire system Singapore (US$ 141.2 billion). In terms of FDI
its financial sector has developed into a regional outflows, Hong Kong ranked seventh globally with
center. In addition, Hong Kong continues to play US$103.6 billion87.
a significant role as a portal for the national
merchandise and capital flows. Hong Kong is the world’s freest economy88,
which follows a free trade policy and hence
Hong Kong’s 2022 GDP contracted 3.5% YoY maintains basically no barriers to trade: there
over the weaker trade, however, it experienced are no customs tariffs on goods imported into
steady recovery in the first two quarters of 2023, or exported from Hong Kong. Import and export
with continuous improvements in the labor licensing is kept to a minimum. Most products do
market. GDP grew by 1.5% YoY in the second not need licenses to enter or leave Hong Kong
quarter, and the value of retail sales increased by and where licenses or notifications are required,
16.5% YoY in July85. they are only intended to fulfill obligations under
various international agreements, or to maintain
Market highlights public health, safety or security. In 2023, trade
continues to be Hong Kong’s biggest challenge
Although Hong Kong’s economy is under short- amid slowing global economies and weakening
term pressure, the business sector believes that external demand. For the first nine months of the
Hong Kong’s future development is limitless due year, exports decreased 12.3% YoY while imports
to the unique advantages given by “one country, slowed 9.8% YoY89. Thus, creating higher value-
two systems” and the vast mainland market. added services for its advanced manufacturing
Tourism will continue to drive consumption industry is an imperative step for Hong Kong to
expenditure, and numerous measures will support undergo industrial transformation. Progressing
the new business ecosystems. Hong Kong’s private toward an international innovative center, Hong
consumption expenditure in the first quarter grew Kong can attract innovative industries with its
by 13% YoY, which is the largest increase recorded current function as a trading center. Combining
since Q3 1987. Over 10 million tourist arrivals the powers of international trade and innovation,
were recorded in the first five months this year, Hong Kong will embark upon a new chapter.
exceeding 40% of the average between 2017 and
201986. The tourism industry and local demand will 87 World Investment Report, UNCTAD, https://
unctad.org/system/files/official-document/wir2023_
85 HKTDC, https://research.hktdc.com/en/article/ en.pdf
MzIwNjkzNTY5 88 The government of the Hong Kong,
86 The Census and Statistics Department of the https://www.info.gov.hk/gia/general/202309/19/
HKSAR, https://www.censtatd.gov.hk/tc/scode130.html P2023091900717.htm?fontSize=1
89 HKTDC, https://research.hktdc.com/en/article/
MzIwNjkzNTY5
172
The economy continue to be the primary forces fueling economic
growth this year.
Situated at the southeastern tip
of China, Hong Kong According to the UNCTAD World Investment
is at the center of East Asia. Since its return to Report 2023, global FDI inflows to Hong Kong
Chinese mainland in 1997, it has followed the “one amounted to US$117.7 billion in 2022, ranked
country, two systems” policy under the Basic Law. fourth globally, behind the United States (US$285.1
Hong Kong is considered one of the world’s freest billion), Chinese mainland (US$189.1 billion) and
economies, and under its laissez-faire system Singapore (US$ 141.2 billion). In terms of FDI
its financial sector has developed into a regional outflows, Hong Kong ranked seventh globally with
center. In addition, Hong Kong continues to play US$103.6 billion87.
a significant role as a portal for the national
merchandise and capital flows. Hong Kong is the world’s freest economy88,
which follows a free trade policy and hence
Hong Kong’s 2022 GDP contracted 3.5% YoY maintains basically no barriers to trade: there
over the weaker trade, however, it experienced are no customs tariffs on goods imported into
steady recovery in the first two quarters of 2023, or exported from Hong Kong. Import and export
with continuous improvements in the labor licensing is kept to a minimum. Most products do
market. GDP grew by 1.5% YoY in the second not need licenses to enter or leave Hong Kong
quarter, and the value of retail sales increased by and where licenses or notifications are required,
16.5% YoY in July85. they are only intended to fulfill obligations under
various international agreements, or to maintain
Market highlights public health, safety or security. In 2023, trade
continues to be Hong Kong’s biggest challenge
Although Hong Kong’s economy is under short- amid slowing global economies and weakening
term pressure, the business sector believes that external demand. For the first nine months of the
Hong Kong’s future development is limitless due year, exports decreased 12.3% YoY while imports
to the unique advantages given by “one country, slowed 9.8% YoY89. Thus, creating higher value-
two systems” and the vast mainland market. added services for its advanced manufacturing
Tourism will continue to drive consumption industry is an imperative step for Hong Kong to
expenditure, and numerous measures will support undergo industrial transformation. Progressing
the new business ecosystems. Hong Kong’s private toward an international innovative center, Hong
consumption expenditure in the first quarter grew Kong can attract innovative industries with its
by 13% YoY, which is the largest increase recorded current function as a trading center. Combining
since Q3 1987. Over 10 million tourist arrivals the powers of international trade and innovation,
were recorded in the first five months this year, Hong Kong will embark upon a new chapter.
exceeding 40% of the average between 2017 and
201986. The tourism industry and local demand will 87 World Investment Report, UNCTAD, https://
unctad.org/system/files/official-document/wir2023_
85 HKTDC, https://research.hktdc.com/en/article/ en.pdf
MzIwNjkzNTY5 88 The government of the Hong Kong,
86 The Census and Statistics Department of the https://www.info.gov.hk/gia/general/202309/19/
HKSAR, https://www.censtatd.gov.hk/tc/scode130.html P2023091900717.htm?fontSize=1
89 HKTDC, https://research.hktdc.com/en/article/
MzIwNjkzNTY5
172
