For the people of Hong Kong, the latest recognition of their city as the world’s freest economy is more than just a ranking – it’s a testament to the resilience and flexibility of their community. The Hong Kong Special Administrative Region government recently welcomed the Fraser Institute’s recognition of the territory as the world’s freest economy, as reported in the Economic Freedom of the World 2022 Annual Report.
This achievement has a direct impact on the daily lives of Hong Kong’s residents, who benefit from the city’s efficient, free, open, and fair business environment. The Fraser Institute’s report highlights Hong Kong’s top ranking in “Freedom to Trade Internationally” and notes that “Regulation” is among the five areas of assessment.
These indicators, which also include the size of government, sound legal system and property rights, and government spending and taxation, demonstrate the city’s commitment to maintaining a prestigious business environment. According to an HKSAR government spokesman, “We have been striving to improve the business environment and enhance market efficiency and support. Thereby allowing the economy to display flexibility and resilience and leverage the advantages of the free market.”
Restoring Stability and Security
The implementation of the National Security Law has been a significant factor in restoring stability and security in Hong Kong, allowing the city’s business environment to flourish once again. The spokesman noted that after more than two years of implementation of the National Security Law, the value of Hong Kong’s asset and wealth management business reached HK$35.5 trillion (US$4.52 trillion) at the end of 2021, with an increase of more than 20 percent compared to the end of 2019.
Additionally, the deposits in the banking system stood at more than HK$15 trillion in July 2022, 8.5 percent higher than prior to the implementation of the National Security Law in June 2020. These numbers demonstrate the positive impact of the National Security Law on Hong Kong’s economy and its reputation as a leading global financial center.
In the latest Global Financial Centres Index published in March this year, Hong Kong’s status as a leading global financial center was reaffirmed, ranking first in Asia and third in the world. The HKSAR government spokesman highlighted the unique strength of Hong Kong’s common law system, which has been recognized by President Xi as a key aspect of the city’s autonomy.
Upholding the Rule of Law
The HKSAR government remains committed to upholding Hong Kong’s fine tradition of the rule of law and judicial independence. In his address on July 1, President Xi recognized the autonomy bestowed by the law and indicated that it is fully respected and resolutely safeguarded by the central government. The spokesman emphasized that “The HKSAR government remains fully committed to upholding Hong Kong’s fine tradition of the rule of law and judicial independence.” This commitment is essential to maintaining the city’s reputation as a stable and secure business environment.
As Hong Kong continues to thrive as the world’s freest economy, it is likely that the city will remain a hub for international trade and finance. The city’s efficient and fair business environment, combined with its commitment to the rule of law and judicial independence, make it an attractive destination for businesses and investors.
As the global economy continues to evolve, it will be important to watch how Hong Kong adapts and responds to new challenges and opportunities.
Looking Ahead
As the world’s freest economy, Hong Kong is well-positioned to continue playing a leading role in global trade and finance. In the coming months and years, it will be important to watch how the city’s government and business community navigate the complexities of the global economy, while maintaining their commitment to the principles of freedom and openness that have made Hong Kong so successful. With its strong foundation and resilient community, Hong Kong is likely to remain a major player on the global stage, and its continued success will have a positive impact on the lives of its residents and the wider business community.
