s a shield
(bearing two junks below a crown) held by a lion (representing the
UK) and a dragon (representing China) with another lion above the
shield and a banner bearing the words HONG KONG below the shield

Economy
-------

Economic overview: Hong Kong has a bustling free market economy
with few tariffs or nontariff barriers. Natural resources are
limited, and food and raw materials must be imported. Manufacturing
and construction account for about 18% of GDP. Goods and services
exports account for about 50% of GDP. Real GDP growth averaged a
remarkable 8% in 1987-88, slowed to 3.0% in 1989-90, and picked up
to 4.2% in 1991, 5.0% in 1992, 5.2% in 1993, 5.5% in 1994, and 5.0%
in 1995. Unemployment, which has been declining since the mid-1980s,
edged up from 2% to 3.5% in 1995. Notwithstanding, a shortage of
labor continues to put upward pressure on prices and the cost of
living. Prospects for 1996 remain bright so long as major trading
partners continue to be reasonably prosperous and so long as
investors feel China will support free market practices after the
takeover in 1997.

GDP: purchasing power parity - $152.4 billion (1995 est.)

GDP real growth rate: 5% (1995 est.)

GDP per capita: $27,500 (1995 est.)

GDP composition by sector:
agriculture: 0.2%
industry: 18.4%
services: 81.4% (1995 est.)

Inflation rate (consumer prices): 8.4% (1995)

Labor force: 2,915,400 (1994)
by occupation: manufacturing 28.5%, wholesale and retail trade,
restaurants, and hotels 27.9%, services 17.7%, financing, insurance,
and real estate 9.2%, transport and communications 4.5%,
construction 2.5%, other 9.7% (1989)

Unemployment rate: 3.5% (1995 est.)

Budget:
revenues: $19 billion
expenditures: $14.1 billion, including capital expenditures of $289
million (FY94/95)

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

Industrial production growth rate: 2% (1993 est.)

Electricity:
capacity: 8,930,000 kW
production: 33 billion kWh
consumption per capita: 4,628 kWh (1993)

Agriculture: fresh vegetables; poultry

Illicit drugs: a hub for Southeast Asian heroin trade;
transshipment and money-laundering center; increasing indigenous
amphetamine abuse

Exports: $177.1 billion (including re-exports)(f.o.b., 1995 est.)
commodities: clothing, textiles, yarn and fabric, footwear,
electrical appliances, watches