Hong Kong was once described by Milton Friedman as the world’s greatest experiment in laissez-faire capitalism. It maintains a highly developed capitalist economy, ranked the freest in the world by the Index of Economic Freedom for 15 consecutive years. It is an important centre for international finance and trade, with one of the greatest concentrations of corporate headquarters in the Asia-Pacific region, and is known as one of the Four Asian Tigers for its high growth rates and rapid development from the 1960s to the 1990s. Between 1961 and 1997 Hong Kong's gross domestic product grew 180 times while per-capita GDP increased 87 times over.

The Hong Kong Stock Exchange is the seventh largest in the world, with a market capitalisation of US$2.3 trillion as of December 2009. In that year, Hong Kong raised 22 percent of worldwide initial public offering (IPO) capital, making it the largest centre of IPOs in the world. Hong Kong's currency is the Hong Kong dollar, which has been pegged to the U.S. dollar since 1983.

The Hong Kong Government has traditionally played a mostly passive role in the economy, with little by way of industrial policy and almost no import or export controls. Market forces and the private sector were allowed to determine practical development. Under the official policy of "positive non-interventionism", Hong Kong is often cited as an example of laissez-faire capitalism. Following the Second World War, Hong Kong industrialised rapidly as a manufacturing centre driven by exports, and then underwent a rapid transition to a service-based economy in the 1980s.

Hong Kong matured to become a financial centre in the 1990s, but was greatly affected by the Asian financial crisis in 1998, and again in 2003 by the SARS outbreak. A revival of external and domestic demand has led to a strong recovery, as cost decreases strengthened the competitiveness of Hong Kong exports and a long deflationary period ended. Government intervention, initiated by the later colonial governments and continued since 1997, has steadily increased, with the introduction of export credit guarantees, a compulsory pension scheme, a minimum wage, anti-discrimination laws, and a state mortgage backer.

The territory has little arable land and few natural resources, so it imports most of its food and raw materials. Hong Kong is the world's eleventh largest trading entity, with the total value of imports and exports exceeding its gross domestic product. It is the world's largest re-export centre. Much of Hong Kong's exports consist of re-exports, which are products made outside of the territory, especially in mainland China, and distributed via Hong Kong. Even before the transfer of sovereignty, Hong Kong had established extensive trade and investment ties with the mainland, which now enable it to serve as a point of entry for investment flowing into the mainland. At the end of 2007, there were 3.46 million people employed full-time, with the unemployment rate averaging 4.1% for the fourth straight year of decline. Hong Kong's economy is dominated by the service sector, which accounts for over 90% of its GDP, while industry constitutes 9%. Inflation was at 2.5% in 2007. Hong Kong's largest export markets are mainland China, the United States, and Japan.

As of 2009, Hong Kong is the fifth most expensive city for expatriates, behind Tokyo, Osaka, Moscow, and Geneva. In 2008, Hong Kong was ranked sixth, and in 2007, it was ranked fifth. In 2009, Hong Kong was ranked third in the Ease of Doing Business Index.

The territory's population is 7.03 million. In 2009, Hong Kong had a birth rate of 11.7 per 1,000 population and a fertility rate of 1,032 children per 1,000 women. Residents from mainland China do not have the right of abode in Hong Kong, nor are they allowed to enter the territory freely. However, the influx of immigrants from mainland China, approximating 45,000 per year, is a significant contributor to its population growth – a daily quota of 150 Mainland Chinese with family ties in Hong Kong are granted a "one way permit". Life expectancy in Hong Kong is 79.16 years for males and 84.79 years for females as of 2009, making it one of the highest life expectancies in the world.

About 95% of the people of Hong Kong are of Chinese descent, the majority of whom are Taishanese, Chiu Chow, other Cantonese people, and Hakka. Hong Kong's Han majority originate mainly from the Guangzhou and Taishan regions in Guangdong province. The remaining 5% of the population is composed of non-ethnic Chinese forming a highly visible group despite their smaller numbers. There is a South Asian population of Indians, Pakistanis and Nepalese; some Vietnamese refugees have become permanent residents of Hong Kong. There are also Europeans (mostly British), Americans, Canadians, Japanese, and Koreansforeign domestic helpers from Indonesia and the Philippines working in Hong Kong. working in the city's commercial and financial sector. In 2008, there were an estimate of 252,500

Hong Kong's de facto official language is Cantonese, a Chinese language originating from Guangdong province to the north of Hong Kong. English is also an official language, and according to a 1996 by-census is spoken by 3.1 percent of the population as an everyday language and by 34.9 percent of the population as a second language. Signs displaying both Chinese and English are common throughout the territory. Since the 1997 handover, an increase in immigrants from mainland China and greater integration with the mainland economy have brought an increasing number of Mandarin speakers to Hong Kong.

Hong Kong enjoys a high degree of religious freedom, guaranteed by the Basic Law. Ninety percent of Hong Kong's population practises a mix of local religions, most prominently Buddhism, but also, Confucianism, and Taoism. A Christian community of around 600,000 forms about 8% of the total population; it is nearly equally divided between Catholics and Protestants, although smaller Christian communities exist, including the Latter-Day Saints and Jehovah's Witnesses. The Anglican and Roman Catholic churches each freely appoint their own bishops, unlike in mainland China. There are also Sikh, Muslim, Jewish, Hindu and Bahá'í communities. The practice of Falun Gong is tolerated.

According to Emporis, there are 7,650 skyscrapers in Hong Kong, which puts the city at the top of world rankings. The high density and tall skyline of Hong Kong's urban area is due to a lack of available sprawl space, with the average distance from the harbour front to the steep hills of Hong Kong Island at 1.3 km (0.81 mi), much of it reclaimed land. This lack of space causes demand for dense, high-rise offices and housing. Thirty-six of the world's 100 tallest residential buildings are in Hong Kong. More people in Hong Kong live or work above the 14th floor than anywhere else on Earth, making it the world's most vertical city.

As a result of the lack of space and demand for construction, few older buildings remain, and the city is becoming a centre for modern architecture. The International Commerce Centre (ICC), at 484 m (1,588 ft) high, is the tallest building in Hong Kong and the third tallest in the world, by height to roof measurement.  The tallest building prior to the ICC is Two International Finance Centre, at 415 m (1,362 ft) high. Other recognisable skyline features include the HSBC Headquarters Building, the triangular-topped Central Plaza with its pyramid-shaped spire, The Center with its night-time multi-coloured neon light show, and I. M. Pei's Bank of China Tower with its sharp, angular façade. According to the Emporis website, the city skyline has the biggest visual impact of all world cities. The oldest remaining historic structures including the Tsim Sha Tsui Clock Tower, the Central Police Station, and the remains of Kowloon Walled City were constructed during the 19th century and early 20th century.

There are many development plans in place, including the construction of new government buildings, waterfront redevelopment in Central, and a series of projects in West Kowloon. More high-rise development is set to take place on the other side of Victoria Harbour in Kowloon, as the 1998 closure of the nearby Kai Tak Airport lifted strict height restrictions.

A panoramic view of northern Hong Kong Island between North Point in the east (left) and Kennedy Town in the west (right).

A panoramic view of the Hong Kong Island skyline at night.

Hong Kong's transportation network is highly developed. Over 90% of daily travels (11 million) are on public transport, the highest such percentage in the world. Payment can be made using the Octopus card, a stored value system introduced by the Mass Transit Railway (MTR), which is widely accepted on railways, buses and ferries, and accepted like cash at other outlets.

The city's main railway company was merged with the urban mass transit operator in 2007, creating a comprehensive rail network for the whole territory. This rapid transit system has 150 stations, which serve 3.4 million people a day. Hong Kong Tramways, which has served the territory since 1904, covers the northern parts of Hong Kong Island.

Hong Kong's bus service is franchised and run by private operators. Five privately owned companies provide franchised bus service across the territory, together operating more than 700 routes. The two largest, Kowloon Motor Bus provides 402 routes in Kowloon and New Territories; Citybus operates 154 routes on Hong Kong Island; both run cross-harbour services. Double-decker buses were introduced to Hong Kong in 1949, and are now almost exclusively used; single-decker buses remain in use for routes with lower demand or roads with lower load capacity. Public light buses serve most parts of Hong Kong, particularly areas where standard bus lines cannot reach or do not reach as frequently, quickly, or directly.

A Kowloon Motor Bus double-decker bus in Hong Kong.

The Star Ferry service, founded in 1888, operates four lines across Victoria Harbour and provides scenic views of Hong Kong's skyline for its 53,000 daily passengers. It acquired iconic status following its use as a setting on The World of Suzie Wong. Travel writer Ryan Levitt considered the main Tsim Sha Tsui to Central crossing one of the most picturesque in the world. Other ferry services are provided by operators serving outlying islands, new towns, Macau, and cities in mainland China. Hong Kong is famous for its junks traversing the harbour, and small kai-to ferries that serve remote coastal settlements.

Hong Kong Island's steep, hilly terrain was initially served by sedan chairs. The Peak Tram, the first public transport system in Hong Kong, has provided vertical rail transport between Central and Victoria Peak since 1888. In Central and Western district, there is an extensive system of escalators and moving pavements, including the longest outdoor covered escalator system in the world, the Mid-Levels escalator.

Hong Kong International Airport is a leading air passenger gateway and logistics hub in Asia and one of the world's busiest airports in terms of international passenger and cargo movement, serving more than 47 million passengers and handling 3.74 million tonnes (4.12 million tons) of cargo in 2007. It replaced the overcrowded Kai Tak Airport in Kowloon in 1998, and has been rated as the world's best airport in a number of surveys. Over 85 airlines operate at the two-terminal airport and it is the primary hub of Cathay Pacific, Dragonair, Air Hong Kong, Hong Kong Airlines, and Hong Kong Express.