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Hong Kong economic indicators

Hong Kong economic indicators

Estimated government revenue and expenditure, as well as charts showing historical rates for real GDP growth, underlying inflation and unemployment

Charts showing estimated government revenue and expenditure, and other historical rates

Hong Kong Budget Summary
2019-2020

Hong Kong economic indicators

The total government revenue for 2019-20 is estimated to be HKD 626.1 billion, within which tax revenues (i.e. Profits Tax, Stamp Duty, Salaries Tax) account for about 48% of total revenue, followed by land premium (22.8%) and investment income (7.7%). The total government expenditure is estimated at HKD 607.8 billion. Education, social welfare and healthcare account for about 51% of the total government expenditure. The government forecasts an overall surplus in the next five years. However, this has not taken into account the tax rebate and relief measures which the government may implement during the next five-year period.

2019-20 Government revenue (estimated)
Investment income 7.7%
Profits Tax 25.5%
Stamp duties 12.1%
Salaries Tax 10.6%
Other revenue 21.3%
Land premium 22.8%
2019-20 Government expenditure (estimated)
Social welfare 16%
Security 9.4%
Infrastructure 13%
Environment and food 5.5%
Economic 6.3%
Health 14.6%
Others 14.8%
Education 20.4%

Source: 2019-20 Budget Speech by the financial secretary

Real gross domestic product growth rate

Overall, Hong Kong’s economy grew by 3% in 2018. Pressures from global uncertainties such as Brexit and the US-China trade tension restrained Hong Kong’s economic performance. Mainland China’s economic slowdown also continues to affect Hong Kong’s outlook. As such, Hong Kong’s economic growth is projected to be between 2% and 3% in 2019. However, the financial secretary is confident that Hong Kong is fundamentally strong enough to withstand these pressures, given its sizeable foreign currency reserves and strong surpluses.

Source: Census and Statistics Department’s website

Underlying inflation rate

The underlying inflation rate in 2018 is 2.6% and is forecast to be 2.5% in 2019. The government expects the moderate economic growth forecast and the strengthening of the US dollar vis-à-vis other major currencies to help keep external price pressures in check.

 

Source: Census and Statistics Department’s website

Unemployment rate

The unemployment rate in Hong Kong stood at 2.8% in 2018, the lowest level since January 1998. On a yearly basis, the unemployment situation continued to improve for most of the main services sector (e.g. retail) amid stable local consumption and the buoyant performance of inbound tourism. Looking ahead, the labour market will likely remain tight in the short term.

Unemployment rate

Source: Census and Statistics Department’s website