HONG KONG - THE population of Hong Kong, one of the world's most densely populated cities, rose 0.8 per cent in 2008 to 7.01 million, official figures showed on Monday.

The net increase in the southern Chinese territory's population was 56,100, made up of a natural increase through births and deaths of 37,400 and a net increase of 18,700 from new residents, mainly from mainland China, the Census and Statistics Department said.

The population has grown by 211,200 in the past five years.

Hong Kong has one of the world's lowest fertility rates, with less than one baby born for every woman of child-bearing age.

Officials fear the underlying trend downwards will put pressure on a shrinking workforce to support the growing number of elderly.

In 2007, Hong Kong's chief executive Donald Tsang tried to use tax incentives to encourage couples to have more babies, including higher child allowances and a one-off tax rebate upon the birth of a baby. -- AFP