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Appendix V (4)
Economy of Hong Kong and Air Transport
by Mrs. Arnie Wong,
Principal Assistant Secretary for
Economic Services
years.
sector.
ten
an
The economy of Hong Kong has shown rapid growth over the past
For the period 1976-86, the gross domestic product (GDP) recorded
annual average growth rate of 8.2% in real terms. There were year-to-year
variations in the growth rate, reflecting the performance of the export
For example, in the recession year of 1982 GDP recorded a growth rate
of 3% in real terms, and in 1986 the growth rate was 9%. Given that the Hong Kong economy is dependent on trade, and that Hong Kong's trade performance is
dependent on the world economic situation, such variations in the GDP growth
rate are not unexpected. The projected annual average growth rate of the GDP
for the next five years is 5.5% in real terms.
2.
In 1986 the value of GDP was over $290 billion, representing a
significant increase over 1985. Manufacturing is the largest sector in the economy, accounting for 22% of the GDP and 35% of total employment. Financial
and business services sectors are also important.
3.
Since 1985 China has been the largest trading partner of Hong Kong.
This reflects, in part, the increased flow of goods between Hong Kong and China, particularly Guangdong, related to processing trade, compensation
trade, and joint venture arrangements. In the first half of 1987, the major
markets for Hong Kong's domestic exports were USA (accounting for 30% of the
total), EEC (about 20%), China (14%), and Japan (5%). Apart from trade, there
are also increasing links between long kong and China in such areas as
investment, financial and business services, and tourism.