Hong Kong government elegantly welcomes the Heritage Foundation’s high regard for Hong Kong as the world’s freest economy for the 25th consecutive year.This year’s Index of Economic Freedom report reveals, Hong Kong’s overall score remained at 90.2 which makes Hong Kong once again the only economy attaining an overall score higher than 90.
With an economy that is based upon the principles of private enterprises and has a minimum of governmental restrictions, the country’s overall score is consistent as compared to that of the previous year. Retaining its position, which is well above the regional and world averages, this time, Hong Kong is ranked 1st among 43 countries in the Asia–Pacific region.
Moreover a moderately looser fiscal policy encouraged the country’s economic growth in 2018, or else the U.S.–China trade frictions could have significant negative reverberations. Being an exceptionally competitive financial and business hub, Hong Kong remains one of the world’s most resilient economies. Its well developed legal framework provides effective protection of property rights and strongly supports the rule of law. Having no room for corruption, the country’s policies are highly transparent and enhance government integrity. Regulatory efficiency and openness to global commerce encourage a vibrant entrepreneurial climate.
As one of the world’s leading international financial centres, Hong Kong’s service-oriented economy is acknowledged by its low taxation, almost free port trade and well established international financial market.
Its currency, is legally issued by three major international commercial banks, and pegged to the US dollar. Interest rates are generally determined by the individual banks in Hong Kong to ensure they are market driven. Although the Hong Kong Monetary Authority functions as a financial regulatory authority, there is no officially recognised central banking system.
Apart from trade and other commercial links, Hong Kong’s economy owes largely to its tourism sector. The country has a good and well established tourism industry which works in promoting, satisfying its customers by providing world class facilities and tourism attractions, and it provides employment thus adding to the GDP. The tourism industry of Hong Kong is a crucial Industry and is considered one of the major pillars.
Despite some of the political unrest, Hong Kong’s open and market-driven economy continues to flourish, increasingly integrated with the mainland through trade, tourism, and financial links.
