Economic Performance and Human Resources of Hong Kong
Hey everyone! Welcome to your study notes for this super interesting chapter. We're going to explore how Hong Kong's economy works, like checking the city's financial health report! We'll also look at the world of jobs and what opportunities are out there for you in the future. Understanding this helps you make sense of the news, your family's conversations about money, and even your own career path. Let's get started!
Part 1: How's Hong Kong's Economy Doing? (Economic Performance)
Think of an economy like a person's health. We use different tools to check if it's healthy and strong. In economics, we use economic indicators. Don't worry if these sound tricky at first, we'll break them down!
Key Health Checks for an Economy (Economic Indicators)
1. Gross Domestic Product (GDP)
This is a big one! Gross Domestic Product (GDP) is the total value of all goods (like phones, clothes) and services (like bus rides, haircuts) produced in a place over a certain time, usually a year.
Analogy: Imagine our whole city is one giant shop. GDP is the total amount of money the shop earned in one year from selling everything it made and every service it provided. A higher GDP usually means the economy is growing and doing well.
2. Per Capita GDP
Per Capita GDP means "GDP per person". We get it by taking the total GDP and dividing it by the number of people living in that place.
$$ \text{Per Capita GDP} = \frac{\text{Total GDP}}{\text{Total Population}} $$
It gives us a rough idea of the average economic wealth of each person. It helps us compare the economic level of different countries.
3. Unemployment Rate
The unemployment rate is the percentage of people in the workforce who are actively looking for a job but can't find one.
Analogy: In a classroom of 30 students who all want to join a sports team, if 3 students can't find a team to join, the unemployment rate is 10%. A low unemployment rate is good because it means most people who want a job have one.
4. Inflation Rate
The inflation rate measures how quickly the general level of prices for goods and services is rising, and subsequently, how much the purchasing power of money is falling.
Think of it like this: Last year, your favourite bubble tea cost $20. This year, it costs $22. That price increase is inflation! A little bit of inflation is normal, but if it's too high, your money buys less and less.
What Kinds of Jobs Are There? (Industrial Structures)
Economies have three main types of industries, or job sectors:
Primary Industry: Getting raw materials directly from nature. Examples: farming, fishing, mining.
Secondary Industry: Manufacturing and construction. This is where we turn raw materials into finished goods. Examples: making clothes in a factory, building apartments.
Tertiary Industry: Providing services to people and other businesses. This is the biggest sector in Hong Kong! Examples: banking, tourism, education, healthcare, retail shops.
Did you know? In Hong Kong, over 90% of jobs are in the tertiary (service) industry! That's why you see so many banks, hotels, restaurants, and shops everywhere.
Hong Kong's Economic Story
A City Open to the World
Hong Kong's economy is described as highly externally oriented and open. This is a fancy way of saying we do a LOT of business with other countries. We rely heavily on trade, finance, and tourism from all over the globe.
Analogy: Hong Kong is like a super popular convenience store on a busy international highway. Its success depends on all the travellers (other countries) stopping by to buy things, not just the people living next door.
Riding the Economic Waves
Because we are so connected to the world, big global events can affect us a lot. Think of them as economic "storms".
Example 1: The Asian Financial Crisis (1997-1998) - A major economic storm that started in Asia and hit Hong Kong hard.
Example 2: The Global Financial Crisis (2008) - A huge storm that started in the USA but affected the whole world, including Hong Kong.
During these tough times, the HKSAR Government took action to protect our economy. This shows why having a stable economy is so important for our city and is also part of our country's overall national economic security.
Growing with Our Country
Hong Kong's economic success is closely linked to the development of the Mainland, especially since the reform and opening up policy started. Hong Kong acted as a bridge, connecting the Mainland's economy with the rest of the world. This created huge opportunities for both Hong Kong and the Mainland, and our economic ties have become stronger and stronger over the years.
Quick Review Box
• GDP: Total value of goods & services produced.
• Unemployment Rate: % of people wanting a job but jobless.
• Inflation Rate: How fast prices are rising.
• Tertiary Industry: The service sector, HK's largest.
• Externally Oriented: Relies on business with other countries.
Key Takeaway for Part 1
Hong Kong's economy is a dynamic, service-based system that is very connected to the world. We measure its health using indicators like GDP. Its success is closely tied to global events and its strong economic relationship with the Mainland. A stable economy is vital for everyone in Hong Kong and for our nation's security.
Part 2: Hong Kong in a Globalised World
We've mentioned that Hong Kong is super connected to the world. The word for this increasing connection is globalisation.
What is Economic Globalisation?
Economic globalisation is the process of economies around the world becoming more interconnected. Money, goods, and services move between countries more easily and quickly than ever before.
Think of it like this: The world is becoming one giant marketplace. You can buy shoes made in Vietnam, using a phone designed in the US and assembled in China, and pay for it with a banking app from Hong Kong. That's globalisation in action!
What causes it? Mainly advances in technology (like the internet and faster airplanes) and countries agreeing to lower barriers to trade.
What are its impacts?
Good side: We get more choices and often cheaper prices. Businesses can sell to more customers.
Challenging side: More competition for local businesses. Problems in one country can spread quickly to others (like the financial crises we talked about!).
Hong Kong: Asia's World City!
Globalisation has brought both opportunities and challenges for Hong Kong. It has helped Hong Kong become a leading international financial centre (IFC).
Why is Hong Kong an IFC?
Free flow of capital: Money can move in and out of Hong Kong easily.
Simple and low tax system: This attracts businesses and talent from all over the world.
Rule of law: A strong and trusted legal system protects everyone's rights and assets.
Strategic location: Perfectly positioned between the Mainland and the rest of the world.
Under globalisation, Hong Kong plays a unique role as a "super-connector" for our country. It helps Mainland companies raise money to expand globally and helps international companies invest in the massive Mainland market. This is a distinctive advantage for Hong Kong, thanks to the strong support from our country and our close connection with the world.
Key Takeaway for Part 2
Globalisation means the world's economies are more linked. This has helped Hong Kong shine as an international financial centre and as a vital bridge between the Mainland and the world. While it brings challenges like competition, it also creates massive opportunities.
Part 3: Your Future! Jobs & Opportunities in Hong Kong
So, how does all this big economic stuff affect you? It shapes the job market! The types of jobs available in Hong Kong have changed over time, and they will continue to change.
The Changing World of Work
In the past, Hong Kong had many factories (secondary industry). Today, most jobs are in the service sector (tertiary industry). The job market is always evolving.
Opportunities for Youth:
New Industries: Exciting new fields are growing, like FinTech (Financial Technology), arts and culture, and innovation and technology.
The Greater Bay Area (GBA): This is a massive plan to link Hong Kong, Macao, and nine cities in Guangdong into one huge economic hub. It offers many new entrepreneurial and employment opportunities for young people from Hong Kong.
New Ways of Working: The "gig economy" is growing. People work as freelancers, start online businesses, or have flexible project-based jobs. The way we work is changing!
Challenges for Youth:
Global Competition: You're not just competing with people in Hong Kong, but with talented people from all over the world.
Need for New Skills: You need to be a lifelong learner to keep up with new technologies and changes.
Developing an Entrepreneurial Spirit
To succeed in this fast-changing world, it's great to have an entrepreneurial spirit. This doesn't just mean starting a business! It's a mindset that can help you in any job.
What does it mean? It includes:
Creativity and Innovation: Thinking of new and better ways to do things.
Taking Initiative: Being proactive and taking action without waiting to be told.
Taking Calculated Risks: Being brave enough to try something new after thinking it through carefully.
Perseverance: Not giving up when you face setbacks. Keep trying!
By being diligent, equipping yourself with new skills, and embracing this spirit, you can contribute to our society, our country, and the world.
Key Takeaway for Part 3
The job market in Hong Kong is dynamic and full of opportunities, especially in new industries and the Greater Bay Area. To thrive, it's important to be adaptable, keep learning, and develop an entrepreneurial spirit of creativity and perseverance.