Resource-Rich Country #4: Traveling to the Fragrant Harbor Hong Kong is a highly capitalistic economy, and has for 16 consecutive years been ranked as the freest economy in the world by the Index of Economic Freedom. Hong Kong is the world's thirteenth largest trading entity. The country is so small and with few natural resources of its own, it must import most of its food and raw materials making it the world’s largest re-export center. As the world's seventh-largest holder of foreign currency reserves and assets at US$266,100 million, Hong Kong is uniquely equipped to handle a global economic crisis. In order to access Resource-Rich Country #6, you will need to sign up for the broadcast! Hong Kong's Key Economic Investment OutlookHong Kong has an incredibly stable currency, which may be one of the reasons that make Hong Kong dollar the ninth most traded currency in the world. But it’s different from the other countries presented on this site. The Hong Kong Monetary Authority rigidly manages the exchange rate using an automatic interest rate adjustment mechanism. For example, Hong Kong can drop interest rates to limit demand growth in its currency. But rates will automatically increase if demand drops, thereby creating stability and limiting speculation. Sign up for the Hot Commodities Guide to learn more about these economic measures.    |
