Capital City: Hong Kong
	It is %T:%M %A in Hong Kong

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Economic trends

Hong Kong's economy is considered a model of capitalism for its devotion to free trade, low taxes, zero custom duties and above all no governmental interference. Hong Kong is the world's 11th largest trading hub and 13th largest banking centre. Hong Kong is the 2nd most attractive destination for foreign direct investments in Asia. However, after experiencing several difficult years (starting from Asian financial crises in 1998 to bird flue in 2003), Hong Kong's economic growth was shooting up again since 2003, recording high GDP growth rates (8.6% in 2004 and 7.5% in 2005). However, according to IMF and due to slow down in global trade, the economic growth rate is also slowing down to 5.7% in 2007 and 4.7% forcasted for 2008. The current-account surplus will remain substantial, while inflation will continue to edge up (it went up from 0.9% in 2005 to 2.0% in 2007).

Main branches of industry

The agriculture sector is almost non-existent in Hong Kong which has to import 80% of its food supplies. Hong Kong does not possess any natural resources and is entirely dependent on imports for raw materials and energy. In fact, imports and exports (including re-exports) exceed the country’s GDP. The manufacturing industry contributes around 9% to the GDP; the main industrial sectors being textile, clothing and electrical components. Services sector, especially financial services, is the heart of the economic activity and contributes nearly 90% to the GDP. The tourism industry is booming mainly due to exponential increase in the number of visitors from mainland China. The upsurge has also been boosted by the recent opening of Hong Kong Disneyland Resort.

International trade

Hong Kong has extensive trade and investment ties with the People's Republic of China which existed even before the handover of July 1997. One third of China's external trade goes through Hong Kong, and re-exports account for more than 90% of Hong Kong total exports. Its top three export partners are: China, the U.S.A. and Japan; while as the top three import partners are: China, Japan and Singapore. The country mainly imports machinery, vehicles, oil & gas, food products, and ores & metals; while as the goods mainly exported are manufactured products and ores & metals.