Hong Kong Economic Growth, 1978-2011

Hong Kong Economic Growth in the year 1978-1997

Background of Open door policy of China

The China economic reform and open door policy in 1978 offered a unique opportunity for Hong Kong to sustain its growth momentum. Hong Kong became the premier gateway for trade with and investment into and out of the Mainland China. It also triggered off the structural transformations of Hong Kong's economy, including the serving the role as an entrepot, and shifting from manufacturing to services sectors, Development as a financial centre.

The Contribution of Hong Kong exports On GDP growth

In three major components of Hong Kong exports, including domestic export, re-export earnings and export of services. There were large decline in domestic exports and rapid growth in re-exports and exports of services during 1981-2001. Re-export earnings recorded the largest expansion, increasing on average by 20% and contributing to 40% of the GDP growth over the same period.

The visible trade between Hong Kong and the Mainland has grown at an average annual rate of 28% from 1978 to 1997. In 1997, the two-way trade continued to grow, but only moderately, by 6 per cent. The Mainland remained Hong Kong's largest trading partner in 1997.

evelopment of a financial center in 1980s

During the process of structural transformation, Hong Kong has developed to an international financial center in which financial services contributes 1/4 to GDP. More than 500 banking institutions set up their business in Hong Kong and the external assets and deposit-saving held by banks exceeded $600 billion, leading Hong Kong to one of the largest banking centers in the world. Thanks for the open door policy of China, Hong Kong became the stepping stone for international enterprises to get into China market and foreign direct investment into