HK Economy- Highlight
14 March 2018
With the overall export level showing a modest growth of 8% for 2017 as a whole, Hong Kong exporters seemed to start 2018 in a notably optimistic mood. The HKTDC Export Index rebounded to 49.4 – a touch below the watershed level of 50 – in 1Q18, rising from 44.6 in 4Q17. Improving sentiment among the key industries, as well as toward the major overseas markets, suggested the likelihood of an improvement in Hong Kong’s overall export performance over the near term.
Under the Macau SAR Five-Year Development Plan, Macau is set to take its role as a service platform for commercial and trade co-operation between China and the Portuguese-speaking countries (PSCs) to a new level. While Macau’s role as a platform is still at the development stage, the development of the Guangdong-Hong Kong-Macau Bay Area should encourage Hong Kong to use the platform of Macau to build up a commercial and trading network with the PSCs, particularly among SMEs.
Shift of Global Supply Chain and Guangdong-Hong Kong Industrial Development (Conclusions and Recommendations)
Hong Kong as the world’s freest economy is renowned for its straightforward business environment. Its low tax regime and free flows of capital and information all combine to effectively lower overall operational costs, while ultimately facilitating rapid access to international market opportunities. Hence, mainland enterprises often see Hong Kong as their preferred service platform when pursuing Belt and Road opportunities.