Hong Kong Is An Economic Success

1071 WordsApr 2, 20175 Pages
It is a beautiful country located on a small area of 1,063 square miles and population of about 7.4 million people as per census of 2016. In the year of 1960, Hong Kong had a population of 3.1 million. In the period of 57 years population of Hong Kong grew almost 2.5 times, yet, this country has no problem in keeping a pretty low unemployment rate. The seasonally adjusted unemployment rate for January of 2017 was at 3.3 percent. It held the same level as in two previous months. At the same time, the underemployment rate decreased from 1.4% to 1.3%. Hong Kong continues to be an economic success mainly because government stays out of its citizens ' life. Hong Kong 's government keeps business taxes low ( currently at 16.5% for…show more content…
But it appears that Hong Kong is still not happy with its growth. Last year HK economy grew by 1.9% which was below 2.4% in the previous year. For the new fiscal year, which started on April 1, 2017, HK budget includes lower taxes for individuals and subsidiaries to tourism industry which suffered the downturn in recent years. Also, pledges more support for country 's exports and expects improvements in that sector. In turn, HK expects its economy to grow by 2 to 3 percent. HK also promises to look into generous tax deductions for innovation and technology which then, in turn, will improve the cost of output. But HK does not forget about its social part of life and is expecting to see a lot more money given back to the community in terms of elderly care and education. It also includes promoting small and medium businesses, innovation, technology and intellectual property. For the c fiscal year, it is estimated that HK 's revenue will be HK$507.7 billion with overall expenditure to be HK$491.4 billion, which will create a surplus of HK$16.3 for this fiscal year and add to over HK$908 billion which this country already has in its reserve. Stable HK labor market, in an almost full employment, with steady household income growth promises solid consumption expenditure for HK 's current fiscal year. Investment expenditure is more sensitive to external up and downs and changes of the business cycle. It is also expected that an ongoing building and construction works

More about Hong Kong Is An Economic Success

Open Document