TNAG-1630-FCO40-2246-Visits-by-Hong-Kong-Government-officials-to-China--the-UK-an-1987 — Page 118

(24)

Appendix V (4)

Economy of Hong Kong and Air Transport

by Mrs. Arnie Wong,

Principal Assistant Secretary for

Economic Services

years.

sector.

ten

an

The economy of Hong Kong has shown rapid growth over the past

For the period 1976-86, the gross domestic product (GDP) recorded

annual average growth rate of 8.2% in real terms. There were year-to-year

variations in the growth rate, reflecting the performance of the export

For example, in the recession year of 1982 GDP recorded a growth rate

of 3% in real terms, and in 1986 the growth rate was 9%. Given that the Hong Kong economy is dependent on trade, and that Hong Kong's trade performance is

dependent on the world economic situation, such variations in the GDP growth

rate are not unexpected. The projected annual average growth rate of the GDP

for the next five years is 5.5% in real terms.

2.

In 1986 the value of GDP was over $290 billion, representing a

significant increase over 1985. Manufacturing is the largest sector in the economy, accounting for 22% of the GDP and 35% of total employment. Financial

and business services sectors are also important.

3.

Since 1985 China has been the largest trading partner of Hong Kong.

This reflects, in part, the increased flow of goods between Hong Kong and China, particularly Guangdong, related to processing trade, compensation

trade, and joint venture arrangements. In the first half of 1987, the major

markets for Hong Kong's domestic exports were USA (accounting for 30% of the

total), EEC (about 20%), China (14%), and Japan (5%). Apart from trade, there

are also increasing links between long kong and China in such areas as

investment, financial and business services, and tourism.