The Economy of Hong Kong
The economy of Hong Kong is amazing. Hong Kong is one of the world’s leading international financial centers. There is low taxation, near-free port trade and an amazing international financial market. Hong Kong has remained one of the world’s freest economies according to the index of Economic Freedom. To have a free economy means to have more say in your businesses all around. You will be able to sell and more and have more customers with this freedom. Hong Kong companies have one of the best economies because of this freedom. They are located in the heart of Asia around all of the important areas in Asia.
Index of Economic Freedom
The Index of Economic Freedom is a series of ten economic measurements created by the Heritage Foundation and The Wall Street Journal. They both created the Index of Economic Freedom in 1995. In 2013 Hong Kong is ranked number one.
The top ten for 2013 are as follows:
- Hong Kong- percentage rate of 89.3
- Singapore- percentage rate of 88.0
- Australia- percentage rate of 82.6
- New Zeeland- percentage rate of 81.4
- Switzerland- percentage rate of 81.1
- Canada- percentage rate of 79.4
- Chile- percentage rate of 79
- Mauritius- percentage rate of 76.9
- Denmark- percentage rate of 76.1
- United States- percentage rate of 76
Other Important Factors
Hong Kong has been ranked at number one for a many number of years. Since 1995 Hong Kong has yet to be scored anything other than number one. Hong Kong’s economy thrives because of many different reasons. They literally have events happening through the night to the day. It is a city that never sleeps. With the low taxes and business freedom people will flock to the location for fun. With their percentage rage being so high it shows how successful their businesses become and the potential the new businesses have. Tourism is a large help with the economy there as well. With all the new businesses and potential people come from all over to either have fun or view the potential. To form a new business you definitely want to check out the sites first and see where the ideal location could be for you. The index scores nations on ten broad factors of economic freedom. They use statistics from organizations like the World Bank, the International Monetary Fund and the Economists Intelligence Unit. The ten factors that help figure out the scores are as follows:
- Business Freedom
- Trade Freedom
- Monetary Freedom
- Government size/ Spending
- Fiscal freedom
- Property Rights
- Investment Freedom
- Financial Freedom
- Freedom from Corruption
- Labor Freedom
These ten factors are averaged equally into a total score. There is a grade scale from zero to one hundred where one hundred represents the maximum freedom. Hong Kong is the only country to score 90 or above on the hundred point scale. The Economic Freedom score improved for 117 countries. The greatest improvement was shown in Sub-Saharan Africa.
Thomas K. has written extensively about Hong Kong company formation and why this is an excellent region to invest in. He has a passion for business writing as well as the culture of Hong Kong.