ENG-1995 — Page 76

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THE ECONOMY

Gross Domestic Product by broad economic sector

1980

Secondary production

31.6%

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Tertiary production 67.5%

1994

Secondary production 16.8%

Primary production 1.0%

Primary production 0,2%

Tertiary production 83.0%

Over the past fourteen years, the tertiary services sector has become increasingly important in terms of contribution to GDP.

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and professional services such as legal, accounting and insurance services. Hence, since the mid-1980s, there has been a further orientation of the Hong Kong economy towards services.

Reflecting this, the significance of the tertiary services sector as a whole (comprising the wholesale, retail and import/export trades, restaurants and hotels; transport, storage and communication; financing, insurance, real estate and business services; community, social and personal services; and ownership of premises) in terms of its contribution to GDP rose steadily, from around 67 per cent in 1980 to 70 per cent in 1985 and 74 per cent in 1990, and further to 83 per cent in 1994.

The increasing orientation of the Hong Kong economy towards services was also evident in employment. The share of the tertiary services sector as a whole increased from 48 per cent in 1980 to 54 per cent in 1985, and further to 72 per cent in 1995. 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 18 per cent in 1995.

Services

Along with the rapid growth in external trade, the services sector has flourished and diversified. Finance and business services, including banking, insurance, real estate, and a wide range of other professional services, have developed rapidly.

Prompted 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 increased phenomenally in the 1980s. The decade thus saw the re-emergence of Hong