Key economic indicators of Hong Kong - statistics & facts
Hong Kong is an important global financial center and hub for trade with mainland China. The economy is dominated by the service sector, which contributed nearly 94 percent to the GDP in 2022. The city faces growing competition from the mainland, but closer cooperation with neighboring cities in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) also provides new growth opportunities. After three difficult years during the coronavirus pandemic, economic prospects have improved significantly in 2023.
Over the last decade, the importance of trade and logistics for the city’s economy diminished gradually, despite an uptick during the pandemic. The contribution of trade and logistics to Hong Kong's GDP in 2010 was around 25 percent while in 2020, the contribution was less than twenty percent. This could be attributed to the growing competition from the trading ports in mainland China. By contrast, the dominance of the financial sector in Hong Kong has increased over the years, generating 22.4 percent of the city’s GDP in 2022. Hong Kong is frequently ranked as one of the leading financial centers globally. The city government is keen to further augment its role as a global financial hub including being a center of FinTech development.
The integration of Hong Kong into the Greater Bay Area is expected to further propel the economy. The GBA is one of three major city clusters in China and one of the fastest developing economic bay areas in the world. The Chinese government supports the integration of Hong Kong into mainland China’s city cluster, thereby creating new opportunities for closer cooperation with Guangdong’s manufacturing base and innovation capabilities in Shenzhen and Guangzhou.
Hong Kong’s economy
Hong Kong has a long tradition as an economic bridge to mainland China. It has developed into an international hub for trade, investment, and business services. This is due to its business-friendly environment, strong legal rights and IP protection, low and simple taxation, as well as its large and skilled talent pool.Over the last decade, the importance of trade and logistics for the city’s economy diminished gradually, despite an uptick during the pandemic. The contribution of trade and logistics to Hong Kong's GDP in 2010 was around 25 percent while in 2020, the contribution was less than twenty percent. This could be attributed to the growing competition from the trading ports in mainland China. By contrast, the dominance of the financial sector in Hong Kong has increased over the years, generating 22.4 percent of the city’s GDP in 2022. Hong Kong is frequently ranked as one of the leading financial centers globally. The city government is keen to further augment its role as a global financial hub including being a center of FinTech development.
The integration of Hong Kong into the Greater Bay Area is expected to further propel the economy. The GBA is one of three major city clusters in China and one of the fastest developing economic bay areas in the world. The Chinese government supports the integration of Hong Kong into mainland China’s city cluster, thereby creating new opportunities for closer cooperation with Guangdong’s manufacturing base and innovation capabilities in Shenzhen and Guangzhou.
