manufacturing, starting with textiles (which remains the dominant industry), but diversifying later into many other products, including plastics, clectrical and electronic goods, scientific instruments, watches, and photographic and optical equipment.
Trade and commerce have however remained important. Recently, Hong Kong has also developed as a financial and tourist centre. In 1977, the major activities, with the proportion of employment they accounted for and the approximate contribution they made to the net output of the economy were:
Activity
% of Employment
% of Output
Manufacturing
44%
26%
Wholesale and retail trade,
hotels and restaurants
20%
23%
Community, social and personal
services
16%
16%
Construction
78
6%
Transport and communications
7%
6%
business
Finance, insurance, real estate,
services
3%
20%
Agriculture, fishing and mining
2%
1%
Public utilities
1%
2%
The per capita Gross Domestic Product in 1978 was HK$13, 826
(approx £1,455 - this, and all subsequent comparisons, at 1978 rates
C
of exchange i.e. £1 = HK$9.50).
per month (approximately £103).
The average gross wage was HKX979 Inflation was 6% and unemployment
about 2.5% at the end of the year.
Estimated government revenue in 1978/79 was HK$ 10,366 million (approx £1,090 million), 38% of this came from direct taxes (income tax of 15%, profits tax and estate duty); 27% from indirect taxes (rates, excise duties, stamp duties, betting taxes, motor vehicle taxes); and the remainder from other sources, in particular government land transactions and payments for government services.
Of total government expenditure of an estimated HK$10,266 million (approx £1,080 million) in 1977/78, some 46% was spent on social services, 19% on general services (police, defence, administration etc), 19% on community services (transport, water supplies, amenities,