Major Line of Business Hong Kong 1. Overall consumer prices rose by 2.
Instead, the over-budget and behind-schedule project has turned into a symbol of the deteriorating political and economic relationship between Beijing and Hong Kong.
It could be a foretaste of the profound difficulties that lie ahead for the global financial centre. To smooth rail departures, the Hong Kong government is planning to place Chinese border police inside Kowloon station, much like French police conduct checks on outgoing Eurostar passengers at St Pancras terminus in London.
The case of the booksellers has crystallised anger over growing interference by Beijing. Opposition legislators have vowed to block the rail project rather than allow Chinese police to operate in the heart of Hong Kong.
It had been scheduled to open in but will not be operational before late A 30km sea bridge and tunnel is being built to connect Hong Kong with the casino centre of Macau and the mainland city of Zhuhai and is also beset by cost overruns and delays.
Escalating tensions, both with Beijing and within Hong Kong, are further complicating these projects and adding to the economic clouds over the territory. Its traditional pillars of wealth— tourism, retail, trade, financial services and property development — have all been hit by cyclical and structural downturns that have exposed the reliance on China, which accounts for 40 per cent of trade.
Over the past decade, China has opened its economy further and more investors are doing business directly with the mainland, causing Hong Kong to lose its relevance as a gateway. Facing a severe shortage of space, high costs and Chinese rivals with strong government support, more downward pressure is likely.
Previously Hong Kong benefited from rapid growth in China and low interest rates in the US, given that its currency is pegged to the dollar. Now the situation is reversing, with China facing a period of restructuring and slower growth, while the US Federal Reserve is expected to raise interest rates further, although many investors are betting it will not happen in Mr Tsang and Li Ka-shingthe billionaire whose interests in Hong Kong stretch from ports to property and retail to telecoms, have both warned that the economic outlook is worse than that faced during the Sars epidemic inwhich killed people and prompted the last sharp slowdown.
Retail has taken the biggest hit in the current downturn. Sales had been buoyed when wealthy Chinese consumers flocked to the territory to buy luxury goods and cosmetics, but takings slipped 11 per cent year on year during the first five months of and the number of mainland tourists dropped 12 per cent in the same period to 17m.
Its sales in Hong Kong and Macau fell on an annualised basis by 22 per cent in the three months to the end of June. Other companies, such as handbag retailer Coach and watchmaker Jaeger-LeCoultre, which viewed Hong Kong as a cash cow, have been closing stores.
Other key parts of the economy such as banking, property and trading services are also suffering. Declining interest from mainland buyers has contributed to falling house prices, although Hong Kong still has the most expensive housing in the world as a proportion of median income. Some developers are taking aggressive measures to close deals, such as offering buyers top-up financing to cover the initial deposit and other costs excluding a bank mortgage.
He says the situation is likely to get worse before it gets better, with a glut of new supply still coming on to the market. Banks with exposure to the mainland are starting to feel the fallout as Beijing allows some defaults from state-owned companies, as well as private enterprises, in an attempt to manage the huge debt overhang that threatens to undermine growth and stability.
It recently laid off staff. Unemployment is running at 3. These misgivings intensified after the five booksellers vanished between last October and December, before appearing in mainland police custody accused of distributing politically sensitive works.Unfortunately for Hong Kong the battle over its future is coming as its China-dependent economy faces the “worst time in 20 years”, according to John Tsang, the financial secretary.
future growth of Hong Kong. In Section 2, we will present a brief discussion of the previous growth of Hong To abstract our analysis from intra-economy resource allocation, let us assume that the economy of Hong Kong can be represented by a single sector producing a homogeneous product.
This sector consists of competitive. Economic and Trade Information on Hong Kong Table: Major Economic Indicators (Hong Kong) Chart: Real GDP Growth (Hong Kong) Chart: Unemployment Rate (Hong Kong) Hong Kong is the world’s freest economy.
It is the world's most services-oriented economy, with services sectors accounting for more than 90% of GDP. Unfortunately for Hong Kong the battle over its future is coming as its China-dependent economy faces the “worst time in 20 years”, according to John Tsang, the financial secretary.
The Hong Kong Government was the fourth highest ranked Asian government in the World Economic Forum's Network Readiness Index (NRI), a measure of a government's information and communication technologies in , and ranked 13th globally.
Hong Kong’s economy expanded by % year-on-year in real terms in the third quarter of , after the growth of % in the preceding quarter, marking the eighth consecutive quarter of growth above the trend growth rate of % per annum in the past decade.