The pandemic continues to have a disruptive impact on cities worldwide, and Hong Kong is no exception. Following a period of recession and economic contraction, Hong Kong’s economy is now predicted to return to growth this year. According to our survey of Swedish companies operating locally, the business climate is improving compared to a year ago.
A majority of the responding companies, 77%, remained profitable or at break-even in 2020. Most have a more positive economic outlook today and are expecting increased turnover and unchanged or slightly increased investments during the coming year.
When it comes to the measures taken by the government to combat Covid-19, Swedish companies are consider them adequate, although travel restrictions, closed borders and mandatory quarantine rules have clearly had a negative impact on most companies.
The strategic advantages of doing business in Hong Kong have been indisputable for many years – given its free market economy, taxation system and geographical proximity to both China and East Asian economies. But today’s reality is marked by uncertainty as the status quo has been challenged in more ways than one.
Concerns remain regarding political developments in Hong Kong, including the implementation of the National Security Law, and their impact on the overall business climate in the city. The main areas of concern for companies in this regard are Hong Kong’s status as an international business centre, freedom of speech and the independence of the judicial system. A majority of the companies see a negative impact on the overall business climate in as a result of these developments.
Download the report for a full overview of the results.
This survey was carried out in April 2021 and included 107 member companies of the Swedish Chamber of Commerce in Hong Kong, with a total of 62 respondents and a response rate of 58%.
ABOUT THE SURVEY
The Business Climate Survey is produced on an annual basis by Team Sweden, a joint initiative where Business Sweden collaborates with Sweden’s local embassies, consulates and chambers of commerce around the world.
The survey provides first-hand perspectives and insights into business trends, issues and challenges in global markets based on extensive interviews with Swedish companies operating in each respective country.