THE ECONOMY
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per cent in 1980 and 1981, before rising to around three per cent during the period from 1985 to 1987. It then declined to slightly more than two per cent in the following years.
The contribution of the tertiary services sector as a whole (comprising the wholesale, retail and import/export trades, restaurants and hotels; transport, storage and communica- tions; finance, insurance, real estate and business services; and community, social and personal services) to the GDP increased from 60 per cent in 1970, to 65 per cent in 1982. It then fell to around 62-64 per cent during the period from 1983 to 1986, before rising steadily to 77 per cent in 1993.
The most notable change in employment since the early 1970s was the continuous decline in the share of the manufacturing sector in total employment, from 47 per cent in 1971 to 41 per cent in 1981, and further to 20 per cent in the first three quarters of 1994. On the other hand, the share of the tertiary services sector as a whole in total employment increased from 41 per cent in 1971 to 47 per cent in 1981, and further to 71 per cent in the first three quarters of 1994.
The Services Sector
Over the past decades, the rapid growth in external trade has not only enabled Hong Kong to build up a strong manufacturing base, it has also provided the underlying conditions for the services sector to flourish and diversify. Of particular note has been the rapid growth and development of finance and business services, including banking, insurance, real estate, and a wide range of other professional services.
China's open door policy and its economic reforms and trade liberalisation saw Hong Kong resume its prominent role as a major regional entrepôt in the 1980s. Rapid economic growth in the Asia-Pacific region over the past decade provided an added stimulus. Trade and other business links between Hong Kong and the region in general, and China in particular, expanded rapidly. Re-export trade showed a sharp increase, with an average annual growth rate of about 25 per cent in real terms from 1985 to 1994.
Over the years, Hong Kong has developed an efficient wholesale and retail network to cater for the growing consumption needs of a more affluent population. Supermarkets, large department stores, convenience stores and modern shopping centres have become increasingly popular. This development has been reinforced by a rapid growth in tourism. Restaurants and hotels have also seen a substantial increase in business. With higher household incomes, there has been a growing demand for goods and services of a better quality, and services in the community, social and recreational fields have also grown substantially.
Externally, reflecting the ongoing development of Hong Kong as a major regional trade, finance and business services centre, trade in services has continued to expand rapidly in recent years. Apart from trade-related services and tourism, there has been a rising demand also for professional and other support services. Offshore trading, cross-border land transport services and other business services, including exports of construction, legal, accountancy, computer and management consultancy services to China and other East Asian economies, have all shown rapid increases.
Between 1984 and 1994, exports of services rose at an average annual rate of eight per cent in real terms, and imports of services at 11 per cent. The major components of Hong Kong's trade in services are shipping, civil aviation, tourism and various financial services.