THE ECONOMY
Reflecting this, the contribution to GDP of the tertiary services sector (comprising the wholesale, retail and import/export trades, restaurants and hotels; transport, storage and communications; financing, insurance, real estate and business services; community, social and personal services; and ownership of premises) rose distinctly, from 67 per cent in 1980 to 74 per cent in 1990, and further to 85 per cent in 1998.
Chart 3:
Employment by broad economic sector
1980
1999*
Secondary production 50.1%
Primary production 1.5%
Secondary production 17.9%
Primary production 0.4%
46
Tertiary production 48.4%
Tertiary production 81.7%
With the ongoing relocation of lower value-added and less skill-intensive manufacturing processes to the Mainland and steady expansion of service sector activities in Hong Kong, the tertiary services sector has long overtaken the secondary production sector to become the largest employer in the economy.
*Average of Q1 to Q3 1999.
This structural change in the economy was accompanied by a distinct shift in the sectoral distribution of employment. The share of the services sector in total employment surged from 48 per cent in 1980 to 63 per cent in 1990, and further to about 82 per cent in 1999. On the other hand, the share of the manufacturing sector in total employment shrank visibly, from 42 per cent in 1980 to 28 per cent in 1990, and further to only about 8 per cent in 1999.
The Services Sector
Over the past two decades, the services sector has not only flourished but also diversified in various types of activities, along with the structural transformation of the economy. Amongst the various service industries, finance and business services, including banking, insurance, real estate and a wide range of related professional services, have shown particularly robust growth. So has telecommunications especially in the more recent years, amidst increased liberalisation of services and facilities in the sector.
Between 1989 and 1999, exports of services grew by an annual average of 5 per cent in real terms, and imports of services by an annual average of 6 per cent in real terms. Civil aviation, shipping, travel and tourism, trade-related services, and various