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Economic Growth in Hong Kong

In: Business and Management

Submitted By Mikethompson
Words 670
Pages 3
World Bank Report on Economic Growth In the last forty to fifty years Hong Kong and Singapore have gone from developing nations to industrialized nations with high standards of living. Hong Kong and Singapore have gone from an average gross domestic product per capita of $5,000 forty years ago to $50,000 per capita today. Several fiscal and monetary policies have contributed to the economic prosperity of these two countries. Strategies that have been used to encourage economic growth in Hong Kong and Singapore include economic policies that foster investment, entrepreneurship, risk taking, and innovation. These fiscal and monetary policies have allowed Singapore and Hong Kong to experience significant and rapid growth. Singapore and Hong Kong have implemented fiscal and monetary policies that encourage investment, entrepreneurship, risk taking, and innovation. Some of the policies implemented in the last forty years include open economic trade policies that favor exports and imports by limiting tariffs. Another economic strategy is that both Singapore and Hong Kong established themselves as trade hubs for their regions, as well as financial hubs for their regions. Because Hong Kong and Singapore are financial hubs they both have stock markets and strong banking sectors, which allows for capital investment to be readily available. Singapore and Hong Kong both have implemented very low tax rates for both personal tax rates and corporate tax rates. Low tax rates, combined with Singapore and Hong Kong having very transparent, non-corrupt stable political environments, creates the ability for foreign capital to invest in these countries. Another economic policy which has helped Singapore and Hong Kong rise from developed countries to industrialized countries is that they are free market oriented economic policies, which means that there is little wage or price...

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