Is Hong Kong Considered a Global Financial and Economic Hub?
Hong Kong, once a sparsely populated area of farming and fishing villages, has transformed into one of the world's most significant financial centres and commercial ports. This dramatic shift can be attributed to a range of factors, including its robust economy, high global standing, and advanced infrastructure. This article delves into the economic indicators, human development indices, infrastructure, and global standing that highlight why Hong Kong is considered such a remarkable global financial and economic hub.
Economic Indicators
Hong Kong's high GDP per capita is a clear indicator of its high standard of living. The territory's economy is characterized by a robust financial services sector, international trade, and a high level of foreign investment. These factors contribute to a vibrant and dynamic economy that supports a high quality of life for its residents.
Human Development Index (HDI)
Hong Kong scores high on the Human Development Index (HDI), which takes into account life expectancy, educational attainment, and per capita income. This reflects a well-developed healthcare system and education infrastructure, contributing to the overall development of the territory.
Infrastructure and Services
Hong Kong boasts advanced infrastructure, including efficient public transportation, modern healthcare facilities, and a wide range of services. This contributes to a high quality of life for residents, making it a desirable place to live and do business.
Global Standing
Hong Kong is a major global financial hub and is known for its business-friendly environment, which attracts companies and professionals from around the world. The territory's high ranking in the Global Financial Centres Index (GFCI) underscores its global standing as a financial powerhouse.
Historical Transformation
Originally a sparsely populated area of farming and fishing villages, the territory has become one of the world's most significant financial centres and commercial ports. It is the world's tenth-largest exporter and ninth-largest importer. Hong Kong has a major capitalist service economy characterised by low taxation and free trade, and its currency, the Hong Kong dollar, is the eighth most traded currency in the world.
Global Economic Significance
Hong Kong is home to the third-highest number of billionaires of any city in the world and the second-highest number of billionaires of any city in Asia. It also hosts the largest concentration of ultra high-net-worth individuals of any city in the world. Despite its high per capita income, severe income inequality exists among the population.
Advanced Infrastructure
The city has the largest number of skyscrapers of any city in the world and its residents have some of the highest life expectancies in the world. The dense space has led to a highly developed transportation network, with over 90% of daily trips made on public transport, the highest percentage in the world. Hong Kong is ranked third in the Global Financial Centres Index.
Global Trade
Hong Kong remains the second most expensive residential property market and the most expensive city in the world to live in for expatriates. It is also the tenth-largest trading entity in the world, exporting and importing more goods in value than its gross domestic product in 2017.
Economic Challenges
While Hong Kong is a highly developed territory and ranks fourth among all countries, regions, and territories in the world on the UN Human Development Index, it faces significant economic challenges, including severe income inequality. The city has the highest gas prices in the world, with an average cost of 2.50 per liter, leading to a 2021 cost of living rating of 101.
In conclusion, Hong Kong's transformation from a sparsely populated farming and fishing area to a global financial and economic hub highlights its resilience, innovation, and adaptability. Despite the challenges, Hong Kong continues to attract global attention as a place of opportunity and development.