Editor’s Note
This overview highlights Hong Kong’s enduring strengths as a globally connected business hub, underpinned by its open economy, low-tax regime, and robust service sector.
Hong Kong remains an economy characterized by a high degree of openness, low taxation, a stable and freely convertible currency, and a strong predominance of services (93.4% of GDP in 2022). Its GDP per capita (USD 50,695 in 2023) is one of the highest in Asia, having benefited from rapid growth in the second half of the 20th century (GDP multiplied by 10 in 30 years between 1961 and 1991).
However, Hong Kong’s growth has slowed since then (+2.9% on average between 1997 and 2021), successively penalized by the Asian financial crisis in 1997, the dot-com bubble burst in 2000, SARS in 2003, the global economic crisis of 2008, and finally the Covid-19 pandemic with the continuation of a zero-Covid strategy, costly for the Hong Kong economy. Due to this slowdown, coinciding with the rapid development of the Chinese economy in recent decades, Hong Kong has seen the relative weight of its GDP contract sharply compared to China’s, falling from 18.4% in 1997 to 2% today.
Hong Kong’s economy went through two years of recession in 2019 and 2020 (GDP down 1.7% then 6.5%), followed by a rebound of 6.3% in 2021, and then a new decline of 3.5% in 2022. More recently, after +1.5% in Q2 and +4.1% in Q3, Hong Kong’s GDP saw an increase of 4.3% in the fourth quarter of 2023 year-on-year, marking a rise of 3.2% for the year 2023. As in previous quarters, growth remains driven by domestic consumption, notably thanks to a gradual recovery in tourism (mainly from mainland China). Beyond the recovery in consumption and investment, supported by the gradual return of tourists, government programs (like the Top Talent Scheme) also contributed to the rebound in economic growth at the end of 2023, despite weak economic performance in mainland China.
Hong Kong is recognized as one of the most competitive economies in the world, notably due to its very favorable legal and regulatory framework (relatively low income and profit taxes, absence of VAT) which fosters a free and fair business environment.
According to the World Trade Organization (WTO), Hong Kong (with a population of only 7.5 million) is the world’s 10th largest exporter in 2023. Hong Kong’s indispensable position as a commercial hub is explained by its efficient financial system (peg to the USD (reference currency in the electronics sector), free convertibility, dual role as an Asian hub and offshore RMB center), and its highly developed logistics sector (world’s top air cargo airport, 11th largest port globally).
In 2023, Hong Kong had 9,039 foreign subsidiaries, including 1,336 regional headquarters. The number of French subsidiaries has been declining continuously since 2020, falling from 373 in 2020 to 346 in 2023. Among the 373 French subsidiaries, there are 81 regional headquarters and 100 regional offices.
Excellent image of France in high-growth sectors (bakery, pastry, gourmet, meat products) and traditional advantage in stable, promising sectors (fashion, wine, luxury, cosmetics, decoration, children’s goods).
Aging population with growing needs for home care, wellness, and medicalized homes.
Optimized management of transport infrastructure and the introduction of new mobility uses are priorities for the executive to offer new services to users and achieve CO2 emission reduction targets.
Dependence on foreign technologies for fundamental components, particularly in aviation and IT.
Hong Kong is expected to regain its place among the top 5 global destinations for IPOs in 2024.
Agriculture and Agri-food Industries
• Wines and Spirits
• Gastronomy and High-End Products
• Organic Products
• Processed “Terroir” Products
• Food E-commerce
Technologies and Services
• Connected Objects
• Telecoms and Internet
• Fintech
• E-commerce
• Smart City Blueprint
Industries and Cleantech
• Environment (water, air, waste)
• Industry of the Future
• Electric and Autonomous Vehicles
• Construction
• Energy Efficiency
Lifestyle and Health
• Biotechnologies
• Perfumes and Cosmetics
• Fashion and Fashion Accessories
• Sports and Tourism
• Elderly Care Services
French Exports to Hong Kong
After a year 2022 during which French exports to Hong Kong remained stable (+0.02%), they increased by 6.16% in 2023 thanks to the reopening of Chinese borders and China’s abandonment of the “zero-Covid” strategy, reaching 5.35 billion EUR according to the French Customs CPF nomenclature. This recovery was largely supported by a significant increase in exports of luxury goods (notably leather goods, jewelry, and clothing). Consequently, Hong Kong maintains its position as France’s 3rd largest bilateral trade surplus at 4.8 billion EUR, which is notably explained by the fact that 70.7% of French exports to Hong Kong are re-exported to mainland China and the rest of the region.
