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INDUSTRY AND TRAD
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DOMESTIC exports slowed down with an increase of one per cent in 1990 as a result of slackening demand in some of Hong Kong's major markets and the general slowdown of the_world economy. However, Hong Kong is rapidly developing into a service and sourcing centre for the region, as evidenced by a 20 per cent growth in re-exports.__
Manufacturing industries remained an important component of the Hong Kong economy, accounting for 18.3 per cent of the gross domestic product in 1989. In 1990, the manufacturing sector employed 762 300 persons, or 28 per cent of total employment. It is estimated that up to 90 per cent of Hong Kong's manufacturing output is eventually exported.
Overall, the major factors that contributed to Hong Kong's success as a leading manufacturing and commercial centre continued to work well. Among these were a simple tax structure and low tax rate, a versatile and industrious workforce, an aggressive and innovative managerial class, efficient transport facilities, a fine harbour, excellent international communications and the government's firm commitment to free trade and free enterprise.
The lack of natural resources and the limited supply of land for industrial use have generally constrained diversification into capital and land-intensive industries. Light manufacturing industries, producing mainly consumer goods, predominate. Textiles, clothing, electronics, watches and clocks, and plastics are the major industries. These industries together accounted for 73 per cent of total domestic exports in 1990 and 65 per cent of Hong Kong's total manufacturing employment.
Clothing
The clothing industry is the largest single sector and the largest export-earner in the manufacturing sector, The industry employed some 251 409 workers or about 34 per cent of the total manufacturing employment. In 1990, domestic exports of clothing were $72,165 million, accounting for 32 per cent of Hong Kong's total domestic exports.
Hong Kong has been one of the world's leading suppliers of clothing. The clothing industry continued to develop in response to the demand for high-quality and fashion goods, and is now producing a great variety of clothing items ranging from high fashionwear to simple clothing accessories. The industry faces keen competition in its export markets, and automation and mechanisation are becoming increasingly important. Many knitted garment manufacturers have installed computer-aided design equipment and