Hong Kong

Diana Juncaj

Overall Score: 89.6 World Rank: 1

Hong Kong Quick Facts/ United States

Population: 7.188 million /316.4 Million
  • GDP: $274 Billion /16.8 Trillion
  • GDP Growth: 2.9% /1.9%
  • GDP Per Capita: $38,123.52 /$53,101
  • Unemployment: 3.3% /7.5%
  • Inflation: 4.58% /1.5%
  • Foreign Direct Investment: 10482.90 HKD Billion /$187.5 Billion
  • 7 Major Sources of Economic Progress

    Legal System

    The legal system of the Hong Kong Special Administrative Region (HKSAR) is based on the rule of law and the independence of the judiciary. The constitutional framework for the legal system is provided by the Basic Law sanctioned by the National People's Congress of the PRC.

    Competitive Markets

    They have an open Market, which means they trade a lot. They are Known as one of the world's most open economies for international trade. Hong Kong has a zero percent tariff rate. They are ranked higher than the Unite states at 95.0 in 2009. Their regulated financial system, offers a wide range of financing options.

    Limits on Government Regulation

    The standard income tax rate is 15 percent in Hong Kong. The top corporate tax rate is 16.5 percent. 13.7 percent makes of the complete domestic income. The Government spends about 18.5 of of the gross domestic product. The surplus is managed properly. The population spending on social programs have rapidly increased. The public debt in Hong Kong is very low compared to the United States of America.

    An Efficient Capital Market

    The Labor market in Hong Kong is very strong. It has really well-enforced labor codes. All of the labor hours and wages are determined by the market only. Hong Kong is covered by the World Bank's Doing Business Study.

    Monetary Stability

    Monetary stability is maintained through the exchange-rate peg to the U.S. dollar. The government provides some low-cost housing and green energy subsidies. The Financial Secretary is responsible for achieving the monetary policy. They have a stable external exchange value for their currency. One US$1 is equal to about HK$7.80.

    Low Tax Rates

    According to the 2014 Paying Taxes* study of 189 economies Hong Kong has one of the most tax-friendly economies in the world. They promote inward investment. They do this by providing proper assistance to corporations looking for investment opportunities. Profits tax is capped at 16.5 percent. Salary tax is at a minimum of 15 percent. Property tax is 15 percent.

    Free Trade

    Hong Kong is known for its free port status and easy customs procedures. Tax is paid on very few products. "One major recent change has been to make the import of wine and beer duty free. This has encouraged a thriving wine import, export and storage business serving retail and individual buyers." Free trade in Hong Kong covers both the price of taxes and The burden tax compliance.