The Economy | 51
for a wide range of service providers. Hong Kong has continued to re-orientate itself towards service activities and move up the value chain.
As a result, the share in GDP of the tertiary sector - comprising the import/ export, wholesale and retail trades; accommodation and food services; transportation, storage, postal and courier services; information and communications; financing and insurance; real estate, professional and business services; public administration, social and personal services; and ownership of premises - has risen progressively over the years, to 93 per cent in 2010 (Chart 3). Development on the employment front was similar. Over the past two decades, the tertiary sector employed significantly more workers while the share of employment in secondary production continued to shrink (Chart 4).
Chart 3
Gross Domestic Product by Broad Economic Sector
1990
Secondary production 24.3%
Primary production 0.3%
Tertiary production 75.4%
2010
Secondary production 7.1%
Primary production 0.1%
Tertiary production 92.9%
Over the past two decades, the economy has become increasingly service- oriented.
Note: Due to adoption of the Hong Kong Standard Industrial Classification Version 2.0, the series from 2000 onwards are not strictly comparable with those of the earlier years.
The Services Sector
The services sector is where Hong Kong's competitive advantage lies, and displayed much resilience in 2011 notwithstanding the notable slowdown in merchandise trade. Over the past five years between 2006 and 2011, the value- added part of the services sector grew by a cumulative 21 per cent in real terms, outpacing the corresponding 19 per cent growth of the overall economy. Among the constituent service sectors, wholesale and retail trades showed the fastest cumulative growth of 53 per cent. Coupled with the solid growth of 11 per cent in accommodation and food services, this reflected the strength of domestic demand and the vibrancy in inbound tourism. The steep increase of 41 per cent in financing and insurance was a testament to Hong Kong's drive as an international financial centre. Import and export trade also performed impressively, with a 25 per cent increase in the value-added component of its trading activities over the period. This,