3
00€=
The Economy
THE Hong Kong economy staged an export-led recovery during 1983. Domestic exports, re-exports and imports all grew in real terms, in contrast to the decreases recorded in 1982, and in October domestic exports broke the $10 billion mark for the first time, rising 48 per cent over October 1982 to $10.48 billion. While domestic demand was still relatively weak, the growth rate of the gross domestic product improved. During the year some areas of the economy were affected by unfavourable political factors.
Structure of The Economy
Because of Hong Kong's limited natural resources, it has to depend on imports for virtually all of its requirements, including food and other consumer goods, raw materials, capital goods and fuels. And it must therefore export on a sufficient scale to generate the foreign exchange earnings to pay for these imports, and exports must rise over time if the population is to enjoy a rising standard of living.
The externally-oriented nature of the economy can be seen from the fact that in 1983 the total value of visible imports and exports (including domestic exports and re-exports) amounted to 162 per cent of the gross domestic product. Between 1974 and 1983 the average annual growth rate of domestic exports in real terms was about nine per cent, roughly twice the growth rate of world trade. As a result, Hong Kong now ranks high in the list of the world's top trading nations.
Contribution of Various Economic Sectors
The relative importance of the various economic sectors can be assessed in terms of their value-added contribution to the gross domestic product (GDP) and their shares of total employment.
Primary production (comprising agriculture and fishing, and mining and quarrying) is very limited and its contribution to the GDP is relatively insignificant. Within secondary production (comprising manufacturing, electricity, gas and water, and construction), manufacturing still accounts for the largest share of the GDP as well as employment. This is despite a decline in its relative contribution to the GDP, from about 31 per cent in 1970 to about 26 per cent in 1974 and to about 23 per cent in 1981. The relative importance of the construction sector, however, increased from about six per cent in 1974 to about eight per cent in 1981.
The relative importance of the tertiary services sectors (comprising wholesale and retail trades, restaurants and hotels; transport, storage and communications; the financial and related business services sector; and the community, social and personal services sector) remained stable in the 1970s: their total contribution to the GDP was 64 per cent in 1974 and 1981. However, the relative contribution of the financing, insurance, real estate