Annual Report of the Construction Industry of China Hong Kong 2007-2008 Essay Example

Yearly Report of the Construction Industry of China Hong Kong 2007 Yearly Report of the Construction Industry of China Hong Kong 2007-2008 Essay Yearly Report of the Construction Industry of China Hong Kong 2007-2008 Essay An Annual Report of the Construction Industry of China Hong Kong 2007-2008 arranged by AsiaConstruct Team Research Center for Construction and Real Estate Economics Hong Kong Polytechnic University (www. bre. polyu. edu. hk) for The fourteenth AsiaConstruct Conference 23rd †24th October 2008 Tokyo, Japan. AsiaConstruct14 Team: Michael Anson1, YH Chiang2, Eddie CM Hui2, Patrick TI Lam 2, Stephen WK Mak2, HY Ng2 and Eva XT Yin2, 1 Professor Emeritus, Faculty of Construction and Land Use, The Hong Kong Polytechnic University. 2 Department of Building and Real Estate, The Hong Kong Polytechnic University. About the Research Center for Construction and Real Estate Economics (RCCREE): The RCCREE is the Hong Kong Polytechnic University Center for arrangement situated research and consultancy in development and land financial aspects. It embraces universally pertinent multi-disciplinary research that underpins the headway of the development and land ventures in the accompanying zones: Economic Policy and Institutional Analysis, Real Estate Economics, Construction Economics, Housing, Human Behavior in Economic Decision making, and Value Management and Facilities Performance. For additional data, it would be ideal if you contact Professor Francis K. W. Wong, Director of RCCREE ([emailprotected] edu. hk) or Professor Eddie C. M. Hui, Deputy Director ([emailprotected] edu. hk). October 2008 1 COUNTRY REPORT [As at October 2008, ? 1,000 = HK$ 73. 14; HK$1 = ? 13. 67; US$ 1 = HK$ 7. 76] 1. Official SUMMARY Hong Kong appreciated a high development rate in GDP in 2007 (6. 4%), with a for each capita GDP of US$29,914. While the administration division saw the most elevated development (7. 4%), the development pace of the development area was 0. 4%. The development part recorded a positive development rate since 1997. The Economics viewpoint for the principal half of 2008 was as yet idealistic. Notwithstanding, the outcomes following the breakdown of the property showcase in US, the insolvency of Lehman Brothers and the rescue of other budgetary establishments (e. g. AIG, Freddie Mae and Fannie Mae) by the US government, along with the droop of the securities exc hanges, individuals are getting cynical towards the last 50% of 2008 and one year from now. While the log jam in development of cutting edge economies in Europe and the US will have some effect on the economies of developing markets and the Mainland, the supported fast financial development of the Mainland and its undeniably strengthened monetary mix with Hong Kong will to a constrained degree help the monetary turn of events and pad the effect of the log jam on Hong Kong. As for the work showcase, the joblessness rate has hit a record-breaking low at around 4%. The joblessness pace of development division continued diminishing in these continuous as there were more occupation opening made by the significant ventures, e. g. Hong Kong West and Tsuen Wan seepage burrow, reconstructed the Lo Wu Correctional Institution and so forth. Development Cost has gotten after it hit a base in 2003. It is pretty much in equality of 1997 when the development cost was at its pinnacle. The high development cost can be reflected from the expansion in development materials. The costs of significant development materials, for example, hardwood and steel items have ascended by as much as half more than 4 years. While there was no distributed wages for development laborers, the wages have not ascended in standard with the ascent in expectation for everyday comforts as reflected from the numerous exhibitions of the development laborers and 40-day strike by the bar drinking sprees in Hong Kong, which has prompted a close to stop of the development business. The pay rates of ATPC have increased by a normal of 9-13% more than 2 years, except for venture administrators and wellbeing officials. There is no institutional or lawful section obstruction to the development advertise in Hong Kong. Remote firms are required to satisfy indistinguishable arrangement of rules from nearby firms to get recorded with the power. Henceforth, the import of development administrations doesn't have all the earmarks of being dynamic and has reliably remained at under 4% of the complete development volume. The greater part of the import and fare administrations are completed inside the Asian area, with the Chinese Mainland taking the most elevated rate. The significant administrations were venture the board, contracting and building counseling. Fare of development administrations to districts outside Asia is immaterial. The standpoint of the development business glances promising in the following 10-15 years as the administration has sketched out a progression of infrastructural ventures, a large number of which are cross-outskirt, for example, the scaffold connecting Hong Kong, Macau and Zhuhai. It is visualized in any event HK$250 billion open cash will be spent and 250,000 employment opportunities will be made. The degree to which these ventures will profit the development work showcase is not yet clear. 2. 2. 1 MACRO ECONOMIC REVIEW AND OUTLOOK MAIN MACROECONOMIC INDICATORS 2000 2001 1,131,880 1,299,218 0. 5 1,177 1. 4 59,760 - 11. 7 1,076,998 - 0. 2 57,167 - 7. 9 2002 2003 GDP and Components 1,152,718 1,277,314 1. 8 1,138 - 3. 3 51,396 - 14. 0 1,079,476 0. 2 51,534 1,187,369 1,234,761 3 940 - 17. 4 44,403 - 13. 6 1,062,714 - 1. 5 44,910 40,376 - 10. 1 6,797,700 0. 5 3,515,900 1. 3 6. 8 2004 1,287,900 1,291,923 8. 5 958 1. 9 44,455 0. 1 1,119,304 2005 1,139,110 1,382,590 7. 1 947 - 1. 1 45,547 2 . 5 1,207,873 7. 9 38,538 - 4. 6 6,837,800 0. 6 3,538,100 0. 6 5. 6 2006 1,475,910 7 942 - 0. 5 45,761 0. 4 1,297,545 7. 4 38,688 0. 04 6,909,500 1. 0 3,581,400 1. 2 4. 8 2007 1,569,890 1,616,215 6. 4 n. a. n,a, n. a. n. a. n. a. n. a. n. a. n. . 6,963,100 0. 8 3,640,500 1. 6 4 GDP in chained(2006) dollars (HK$ million) GDP at ebb and flow advertise value (HK$ million) GDP development (%) Primary part (HK$ million) % development Manufacturing division (HK$ million) % development Services segment (HK$ million) % development Construction segment (HK$ million) % development Population development rate (%) Total work power Labor power development rate (%) Unemployment rate (not regularly balanced) Changes in purchaser value file (%) Changes in GDP deflator (%) Short term premium rate* (%) Long term premium rate**(%) Annual normal conversion standard with $US (HK$) ,126,279 1,317,650 8 1,161 - 21. 4 67,646 6. 8 1,077,256 4. 7 62,054 - 5. 3 6,711,500 1. 1 3,374,200 1. 6 4. 9 - 9. 9 - 12. 9 Demographic Indicators 6,730,300 6,725,800 6,764,200 0. 3 - 0. 1 0. 6 3,425,900 3,474,000 3,472,500 1. 5. 1. 4 7. 3 0 7. 9 Financial Indicators - 3. 8 - 3. 6. 21 7. 48 7. 791 - 1. 6 - 1. 9 3. 45 6. 37 7. 799 - 3. 0 - 3. 5 1. 60 5. 40 7. 799 - 2. 6 - 6. 2 0. 81 3. 93 7. 787 - 0. 4 - 3. 5 0. 25 4. 59 7. 788 1. 0 - 0. 1 2. 88 3. 55 7. 777 2. 0. 3 4. 05 4. 83 7. 768 2. 0 3 2. 33 3. 58 7. 803 Notes n. a. information not accessible * yield of 91-day Exchange Fund Bills (mid-year) **yield of 10-year Exchange Fund Notes (mid-year) Sources: GDP, Demographic and Financial Indicators: Government of the HKSAR page at censtatd. gov. hk/hong_kong_statistics Short and long haul financing costs: Monthly Statistical Bulletin, Hong Kong Monetary Authority. Table 2. 1 †Macro-Economic Indicators 3 2. 1. 1 Overview of National Economy According to the Economic Analysis and Business Facilitation Unit (2007) of the Hong Kong Government, development in GDP was 6. 4% in 2007. The long stretches of 2004, 2005, 2006 and 2007 denoted the biggest development in any four sequential years since 1988. Gross domestic product per capita was HK$215,006 (US$27,565), which spoke to a 5. 9% year-on-year development rate. The development pace of the administrations segment was the most noteworthy (7. 4%) among all areas. The development pace of the development segment was 0. 04% in 2007. The development division recorded a position development rate since 1997. The restoring financial execution was extraordinarily credited to the consistent worldwide monetary development and Mainland’s strategies for Hong Kong, for example, the Closer Economic Partnership and Individual Travel Policy. Stock costs and market turnover flooded to a high record in October 2007, preceding the worldwide monetary market choppiness influenced which caused some draw back. The property advertise improved unmistakably further, particularly in the last piece of 2007, with a stamped get in both deal costs and exchanges under an ideal loan fee condition and the determined quality in the economy. The work showcase improved because of the continued financial development. The joblessness rate tumbled to 4% and the regularly balanced joblessness rate tumbled to 3. 4% in the final quarter of 2007, which was the most minimal in very nearly 10 years. The customer cost file just expanded 2%, which proposed a moderate swelling in 2007, in spite of the fact that there was huge increment of imported staples and purchaser products because of the debilitating buy intensity of Hong Kong dollars and the worldwide food expansion. 2. 2. 2 Economy off First Half of 2008 Hong Kong’s economy kept on encountering a considerable development rate in the main portion of 2008. The genuine GDP expanded by 7. 1% contrasted and a year sooner. As indicated by the First Quarter Economic Report 2008, the economy broadened the run of particularly above-pattern development to 18 quarters. The presentation of the money related area was especially fabulous, an indication of the noteworthy advantages realized by the budgetary coordination between the Mainland and Hong Kong. In spite of the fact that there was a worldwide credit advertise strife brought about by the US sub-prime home loan issue, the Hong Kong economy despite everything held up well in ongoing period with our motherland’s economy developing powerfully. By the energetic presentation of Mainland and other developing economies and the further extension of the EU showcase, there was a further outstanding development of 8. 3% in genuine terms in the main quarter. The fares of administrations likewise developed quickly furth