THE ECONOMY
from 48 per cent in 1980 to 54 per cent in 1985, and further to 79 per cent in 1996. On the other hand, the share of the manufacturing sector in total employment was on a distinct downtrend, falling from 42 per cent in 1980 to 36 per cent in 1985, and further to 11 per cent in 1996.
The Service Sectors
Along with the structural change in the economy, the services sector has flourished and diversified in types of activities. Of particular note is the rapid growth and development in finance and business services, including banking, insurance, real estate, and a wide range of other professional services.
Driven by China's economic reforms and trade liberalisation, as well as by the dynamic growth in the Asia-Pacific region, trade between Hong Kong and the region showed phenomenal growth in the 1980s. The past decade saw the re-emergence of Hong Kong as a major entrepôt serving the region in general and China in particular. Nearly 90 per cent of Hong Kong's re-exports involve China either as a source or as a destination.
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 has been reinforced by a continued growth in tourism, which hereto has been a major source of foreign exchange for Hong Kong. With the rise in household incomes over the years, there has been growing demand for goods and services of a better quality, and services in the community, social and recreational fields have also grown substantially.
The rapid growth in trade and other business links between Hong Kong and the Asia-Pacific region in general and China in particular also boosted exports of services. Trade in services continues to expand rapidly, as Hong Kong's role as a major regional trade, finance and business services centre in the region deepens further. Apart from trade-related services and tourism, there has also been an increasing demand 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 1986 and 1996, exports of services grew at an average annual rate of 8 per cent in real terms, and imports of services, at 9 per cent. The major components of Hong Kong's trade in services are shipping, civil aviation, tourism, and various financial services. The shares of transportation services in total exports and total imports of services were 36 per cent and 25 per cent respectively in 1995. The corresponding shares for travel services were 27 per cent and 49 per cent. Other trade- related services such as offshore trading and purchasing/merchandising services contributed 21 per cent of the total value of exports of services and 6 per cent of the total value of imports of services. The corresponding shares for financial and banking services were 7 per cent and 4 per cent.
Analysed by sector, the contribution to the GDP of the wholesale, retail and import/export trades, restaurants and hotels was the largest, rising from 21 per cent in 1980 to 23 per cent in 1985, and further to 27 per cent in 1995. The second-largest contributor was financing, insurance, real estate and business services, contributing
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