Hong Kong Economy is the Most Open Economy Worldwide – An Overview
Why Hong Kong Retains Its Reign as the Number One City in the World for Economic Freedom?
Dynamic. Robust. Open. A place where East meets West. These are just some of the many ways to describe the Hong Kong economy.
How has the Hong Kong Special Administrative Region grown to become one of the world’s most open economies? In Asia, it is one of the cities that achieved remarkable progress over the years. This progress is reflected in several areas where it has an impressive international ranking.
Hong Kong Economy and Business
From an economic standpoint, there is no denying Hong Kong’s remarkable achievements over the years. Even more impressive is how the city has held onto that status for the past 25 years.
Canadian-based Fraser Institute has ranked Hong Kong in the number one position since 1996 for its economic freedom. The UK-based Legatum Institute’s Global Index of Economic Openness 2019 recognises Hong Kong as the number one city in the world for economic openness.
Business-Friendly Tax Approach
Hong Kong’s business-friendly tax system is ranked 2nd in the world by the World Bank and Price Waterhouse Coopers, and is a major part of Hong Kong’s allure for investors. Not only is it a competitive economy, but Hong Kong happens to be the 3rd most hospitable place globally for capital investment. In the World Bank’s 2020 Report on the Ease of Doing Business, Hong Kong is at the number three spot.
It is a given that to thrive in today’s business environment, economies have to be digitally driven. Hong Kong is 2nd in the Asia Pacific region and 8th in the world for digital competitiveness. According to the Total Workforce Index 2018 by ManpowerGroup Solutions, Hong Kong is by far the easiest place in the world for hiring and retaining talent in the workforce.
Finance, Infrastructure and Education
Hong Kong is a leading investment hub. It is the 3rd city in the world for Foreign Direct Investment (FDI) inflow. As for FDI outflow, it ranks world number.
But the economy is not the only thing that is competitive in Hong Kong. In the Global Competitiveness Report 2019 by the World Economic Forum, Hong Kong’s infrastructure is the 3rd best in the world. Thanks to its strategic location and status as the number one cargo hub in the world, Hong Kong sees a lot of business traffic in and out of the city.
You’ll find some of the best talents in the workforce in Hong Kong. That’s because Hong Kong is home to three of the world’s Top 50 Universities. An investor who is setting up here will find no shortage of the talent they need. The local workforce is highly educated, and in 2018, the Hong Kong University’s MBA programmed was rated the best in Asia by The Economist. This rating is for the 9th consecutive year, which says something about the local education system.
The Safest Economy is the Hong Kong Economy
There’s no safer place in the world to set up your business than right here, in the world’s 8th ranked for judicial independence. It has a very efficient legal framework when it comes to settle disputes, ranking 11th in the world for the rule of law. Moreover, Hong Kong is the 16th least corrupted cities among the 180 that were surveyed by Transparency International.