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| Robust growth points to bullish outlook for rest of the year ( 01/08/2004 ) | |||||||||
Hong Kong topped the recent Economic Freedom of the World: 2004 Annual Report conducted by the US Cato Institute in conjunction with Canada's Fraser Institute. Singapore was in the second place followed by Switzerland, the UK and the US, which tied for third. China ranked 90 out of 123 nations for 2002, the most recent year for which data was available. (Hong Kong rates as the world’s freest economy) The city is also uniquely placed to become the world's business capital, thanks to China's emergence as a global powerhouse, according to investment bank CLSA. In its report "Boomtown: Re-enter the Dragon", co-author Jim Walker says that Hong Kong sits at the "heart of the world's most dynamic economy with the most developed service centre in Asia. It is the equivalent of Las Vegas and Manhattan rolled into one." Financial services powerhouse The CLSA report adds that Hong Kong's position as a future financial services and wealth management powerhouse is assured as a result of the gradual opening of China's capital account which is happening through mainland companies setting up in Hong Kong and through individual mainland travellers in Hong Kong. Hong Kong's business hub is also reinforced with about 130 foreign and Chinese mainlandcompanies that have set up operations or increased their overall investment in Hong Kong in the first half of this year. Mike Rowse, director-general of Invest Hong Kong said: "These projects have created over 2,110 jobs and brought in more than HK$3.36 billion (US$435 million) for Hong Kong. Around 20 per cent of these investors have said that Cepa was an important factor in their decision to invest here," added Mr Rowse. (Cepa - easier access to China through Hong Kong) Robust export growth, surge in passenger and cargo figures Hong Kong's exports continued to grow robustly in June, buoyed by a strong global economy and increased demand for goods coming out of China. Total exports increased by 18 per cent while reexports - goods from China that transit Hong Kong on their way to other destinations - grew 19 per cent to HK$157 billion (US$20 billion). Hong Kong's number one airline Cathay Pacific reported an almost 60 per cent surge in passenger traffic in the first half of the year. The carrier also broke its daily passenger record on June 27 when it carried 45,331 passengers. The good news continues at Hong Kong International Airport which recorded double-digit increase in passenger, cargo and aircraft movement figures in June. Cargo throughput was up 24 per cent, passenger traffic rose by 15 per cent and the aircraft movements went up 16 per cent. Hong Kong's economy is still on track for robust growth of 6 per cent this year, supported by buoyant exports and consumer spending, according to a quarterly poll of 10 economists. Consumption and investment will also maintain momentum next year. Related links | |||||||||
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