Hong Kong SAR of ChinaChapters
Occupied by the UK in 1841, Hong Kong was formally ceded by China the following year; various adjacent lands were added later in the 19th century. Pursuant to an agreement signed by China and the UK on 19 December 1984, Hong Kong became the Hong Kong Special Administrative Region of the People's Republic of China on 1 July 1997. In this agreement, China promised that, under its "one country, two systems" formula, China's socialist economic system would not be imposed on Hong Kong and that Hong Kong would enjoy a "high degree of autonomy" in all matters except foreign and defense affairs for the subsequent 50 years.
Key indicators
- Area
- 1,108 km2
- Population
- 7,263,234 (July 2021 est.)
- Government type
- presidential limited democracy; a special administrative region of the People's Republic of China
- Languages
- Cantonese (official) 88.9%, English (official) 4.3%, Mandarin (official) 1.9%, other Chinese dialects 3.1%, other 1.9% (2016 est.)
- GDP
- $346.586 billion (2020 est.)
- Growth rate
- -6% (2020 est.)
- HDI
- N/A
- Capital
- Hong Kong
Macroeconomic indicators
Growth is set to soften somewhat in 2018-19, as exports ease and investment slows. The current account surplus is projected to stabilise. Infrastructure investment, a major growth driver in recent years, is projected to slow further amid tightening monetary conditions and a more rigorous approval process for local government investment.
The monetary policy stance will remain neutral with a tightening bias, as mitigating financial risks has appropriately become a key policy priority. Shadow banking activities are increasingly being reined in and credit growth is slowing, while capital outflows moderated in early 2018 following a surge and the exchange rate has stabilised. Fiscal policy will remain supportive, but less so than in recent years as unauthorised local government investment is subject to increased scrutiny, which will strengthen fiscal sustainability. A series of new tax cuts have been announced, but the headline fiscal deficit will be kept under control by streamlining government organisations to contain public spending. Imminent risks stemming from trade frictions have receded, but the large number of unresolved issues will keep tensions high.
Source: OECD - Economic Forecast
IMF Statistics:
| Subject descriptor | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
|
Gross domestic product, constant prices Percent change (Units) |
6.454 |
-3.681 |
3.215 |
2.879 |
2.726 |
|
Gross domestic product, current prices Percent change (Billions) |
368.954 |
358.696 |
376.969 |
406.775 |
427.782 |
|
Gross domestic product per capita, current prices Percent change (Units) |
49,848.567 |
48,001.536 |
50,029.777 |
53,606.486 |
56,049.859 |
|
Inflation, average consumer prices Percent change (Units) |
1.569 |
1.881 |
2.097 |
2.300 |
2.250 |
|
Volume of imports of goods and services Percent change (Units) |
15.822 |
-12.233 |
-5.307 |
4.979 |
4.142 |
|
Volume of exports of goods and services Percent change (Units) |
17.037 |
-12.535 |
-6.533 |
5.491 |
4.152 |
|
Unemployment rate Percent change (Units) |
5.175 |
4.319 |
2.900 |
2.813 |
2.735 |
|
Current account balance Percent change (Billions) |
43.528 |
36.640 |
35.439 |
35.771 |
35.602 |
|
Current account balance Percent change (Units) |
11.798 |
10.215 |
9.401 |
8.794 |
8.322 |
Estimates
Source: IMF Statistics - Hong Kong
Relationships with Luxembourg
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourgish government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 02.11.2007 (Memorial 2008, A No.202, p.3048)
- Effective 01.01.2008 (Memorial 2008, A No.202, p.3084)
- Amendment of the Convention from 11.11.2010 (Memorial 2011, A No.146, p.2031)
- Effective as of 01.01.2012 (Memorial 2011, A No.146, p.2031)
Air Services agreement
- Agreement from 03.06.1998 (Memorial 2003, A, no. 63, p. 1038 )
- Effective as of 06.06.2003 (Memorial 2003, A, no. 97, p. 1971)
Further information
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Hong Kong SAR of China
Embassy of the Grand Duchy of Luxembourg in China
Ambassador with residence in Beijing: Mr Marc HÜBSCH
Unit 1701, Tower B, Pacific Century Place,
2A Gong Ti Bei Lu, Chaoyang District,
Beijing 100027
Peaople's Republic of China
Tel.: +86 10 8588 0900
Fax: +86 10 6513 7268
E-Mail: pekin.amb@mae.etat.lu
Honorary Consul
Honorary Consul with Jurisdiction over Hong Kong:
Ms Sophie LEUNG
13th floor Queen's Centre
58-64 Queen's Road East
Wanchai
Hong Kong
Tel.: (+852) 3621 0979
E-Mail: conluxhk@gmail.com
Source: Ministry of Foreign Affairs of Luxembourg
Country risk as defined by Office du Ducroire for Hong Kong SAR of China
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: Ducroire Office - Country Risk for Hong Kong
Luxembourg for Business market entry guide to Hong Kong SAR of China:
Market entry guides are brochure series published by the Ministry of the Economy and Foreign Affairs. The series focuses on worldwide markets, industries and business environments, providing comprehensive and in-depth analysis and guidelines. The brochures cover all aspects relating to a market entry including the economic, financial and legal frameworks. The brochures are a vast knowledge pool, compiled into a practice oriented document with many tips and important addresses.
Source: Luxembourg for Business