sharon sanders
Editor-in-Chief & President
Hong Kong flush with surplus but government remains unloved
N Balakrishnan
Last Updated: Mar 8, 2011
snip
It is true that Hong Kong does not grow its own food and is dependent on financial markets for a third of its GDP and therefore does need to save for a time when the financial markets may not be so buoyant. But most analysts agree that the size of Hong Kong's reserves have now gone way past the size needed for prudence. The IMF for example, recommends reserves of 30 per cent to 50 per cent of a country's GDP if possible, whereas Hong Kong's reserves are now approaching about three quarters the size of GDP.
http://www.thenational.ae/thenation...h-with-surplus-but-government-remains-unloved
N Balakrishnan
Last Updated: Mar 8, 2011
snip
It is true that Hong Kong does not grow its own food and is dependent on financial markets for a third of its GDP and therefore does need to save for a time when the financial markets may not be so buoyant. But most analysts agree that the size of Hong Kong's reserves have now gone way past the size needed for prudence. The IMF for example, recommends reserves of 30 per cent to 50 per cent of a country's GDP if possible, whereas Hong Kong's reserves are now approaching about three quarters the size of GDP.
http://www.thenational.ae/thenation...h-with-surplus-but-government-remains-unloved