ng Kong has a free-market economy and is autonomous in
financial affairs. Natural resources are limited and food and raw materials must
be imported. Manufacturing is the backbone of the economy, accounting
for more than 20% of GDP, employing 36% of the labor force, and exporting about
90% of output. Real GDP growth averaged a remakable 8% in 1987-88, then
slowed to a respectable 3% in 1989. Unemployment, which has been declining since
the mid-1980s, is now less than 2%. A shortage of labor continues to put upward
pressure on prices and the cost of living. Short-term prospects remain
solid so long as major trading partners continue to be prosperous. The
crackdown in China in 1989 casts a long shadow over the longer term
economic outlook.

GDP: $57 billion, per capita $10,000; real growth rate 3% (1989)

Inflation rate (consumer prices): 9.5% (1989)

Unemployment rate: 1.6% (1988)

Budget: $6.9 billion (FY89)

Exports: $63.2 billion (f.o.b., 1988), including reexports of
$22.9 billion;
commodities--clothing, textile yarn and fabric, footwear, electrical
appliances, watches and clocks, toys;
partners--US 31%, China 14%, FRG 8%, UK 6%, Japan 5%

Imports: $63.9 billion (c.i.f., 1988);
commodities--foodstuffs, transport equipment, raw materials,
semimanufactures, petroleum;
partners--China 31%, Japan 20%, Taiwan 9%, US 8%

External debt: $9.6 billion (December 1988)

Industrial production: growth rate 7.0% (1988)

Electricity: 7,800,000 kW capacity; 23,000 million kWh produced,
4,030 kWh per capita (1989)

Industries: textiles, clothing, tourism, electronics, plastics, toys,
watches, clocks

Agriculture: minor role in the economy; rice, vegetables, dairy products;
less than 20% self-sufficient; shortages of rice, wheat, water

Aid: US commitments, including Ex-Im (FY70-87), $141.2 million;
Western (non-US) countries, ODA and OOF bilateral commitments (1970-87),
$899.8 million

Currency: Hong Kong dollar (plural--dollars);
1 Hong Kong dollar (HK$) = 100 cents

Exchange rates: Hong Kong dollars (HK$) per US$--7.800 (March 1989),
7.810 (1988), 7.760 (1987), 7.795 (1986), 7.811 (1985); note--linked to the
US dollar at the rate of about 7.8 HK$ per 1 US$ since 1985

Fiscal year: 1 April-31 March

- Communications
Railroads: 35 km 1.435-meter standard gauge, government owned

Highways: 1,100 km total; 794 km paved, 306 km gravel, crushed stone,
or earth

Ports: Hong Kong

Merchant marine: 134 ships (1,00