The Economy | 45
four years, the value-added part of the services sector grew by a cumulative 36 per cent in real terms, outpacing the corresponding 32 per cent growth of the economy. Among the constituent service sectors, financing and insurance showed the fastest cumulative growth of 93 per cent, a testament to Hong Kong's drive as an international financial centre. Import and export trade also performed impressively, with an 56 per cent increase in the value-added component of its trading activities over the period. This, together with a notable growth of 37 per cent in transport and storage services, reflected the generally favourable trading environment during the period and underlined the competitiveness of Hong Kong's trading and logistics sector. The increase of 36 per cent in wholesale and retail trades, as well as the steeper growth of 56 per cent in restaurants and hotels, reflected the strengthening domestic demand and vibrant inbound tourism. In 2007, the value-added part of the services sector rose notably further by 7 per cent in real terms. Financing and insurance, real estate, wholesale and retail trades, restaurants and hotels were the top performers. Import and export trade continued to do well mainly as a result of the vibrant trade flow with the Mainland which helped to soften the impact from the moderation in the growth of the developed economies.
In 2006, the contribution of the services sector to GDP stood at 91 per cent. The wholesale, retail and import/export trades, restaurants and hotels continued to be the largest service sector, accounting for 28 per cent of the GDP. This was followed by finance, insurance, real estate and business services (25 per cent), community, social and personal services (18 per cent), and transport, storage and communications (10 per cent) (Chart 4). More specifically on the four key industries, trading and logistics accounted for 27 per cent of value-added contribution to GDP in 2006, financial services 16 per cent and tourism 3 per cent. The corresponding contribution of professional and other producer services was 11 per cent.
Chart 4
Gross Domestic Product by major services sector
Transport, storage and communications 7.8%
Finance, insurance, real estate and business services 16.1%
1986
Wholesale, retail and import/export trades, restaurants and hotels 21.1%
Transport, storage and communications 9.6%
2006
Wholesale, retail and import/export trades, restaurants and hotels 27.9%
Community, social and personal services 15.6%
Others
sectors 39.4%
Finance, insurance, real estate and business
services 25.0%
Community, social and personal services 18.0%
Others sectors 19.5%
The wholesale, retail and import/export trades, restaurants and hotels, and finance, insurance, real estate and businesses services, remained the two largest service sectors in terms of net output in 2006.