Hong Kong Economic Development

Hong Kong Economic Development The history of Hong Kongs economy is binge with specimens of study restructuring and transformation, especially in the face of unanticipated challenges. The put up 10 years are yet a nonher example of Hong Kongs ability to recreate itself following severe economic shocks. As a result, Hong Kongs economy in 2007 is significantly incompatible than it was in 1997. While around of the changes appear to be for the better, on that point are some developments that may omen future problems. impertinent Shocks and Recovery In the months prior to the Handover, around analysts anticipated that the greatest challenges go about the new HKSAR were political, not economic. It seemed that no one foresaw the impending orthogonal economic shock, the Asian Financial Crisis,29 which would push Hong Kong into an extended recession. Nor could anyone prognosticate the arrival of dangerous Acute Respiratory Syndrome (SARS) and its ability to derail Hon g Kongs economic recovery. Asian Financial Crisis and SARS. Almost simultaneously with the Handover ordinance held in the Hong Kong Convention and Exhibition Centre, the Asian Financial Crisis enamored umpteen of the economies of Southeast Asia.

The crisis quickly spread across most of atomic number 99 Asia and by the end of 1997, most of the Asian currencies had go through significant losses in pry with respect to the U.S. sawhorse bill, ranging from a 13% decline for the Japanese yen to a 55% decline for the Indonesian rupiah. However, two Asian currencies the Chinese renminbi and the Hong Kong dollar did n ot experience the same decline in value due ! to their link to the U.S.dollar.30 The Hong Kong dollars link mass meeting rate did not completely isolate the Hong Kong economy from the personal effects of the Asian Financial Crisis. A speculative attack on the Hong Kong dollar in lofty 1998 to force a de-linking was success waxy fought off to a too large part by the $15 billion intervention of the Hong Kong presidency in the Hong Kong stock market,...If you fatality to get a full essay, order it on our website: OrderCustomPaper.com

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