ENG-1995 — Page 77

THE ECONOMY

Employment by broad economic sector

1980

1995

Secondary production 50.1%

Secondary production 27.1%

Primary production 1.5%

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Tertiary production 48.4%

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Tertiary production 72.3%

Primary production

0.6%

With the on-going relocation of lower value-added and less skill-intensive manufacturing processes to China and steady expansion of service sector activities in Hong Kong, the tertiary services sector has overtaken the secondary production sector to become the largest employer.

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Kong as a major entrepôt serving the region in general and China in particular. Nearly 90 per cent of Hong Kong's re-exports now involve China either as a source or as a destination.

Over the years, Hong Kong has developed an efficient wholesale and retail network to cater for the growing consumption needs of a more affluent population. This has been reinforced by a continued growth in tourism, long a major source of foreign exchange for Hong Kong. With the rise in household incomes over the years, there has been growing demand for goods and services of a better quality, and services in the community, social and recreational fields have also grown substantially.

The rapid growth in trade and other business links between Hong Kong and the Asia-Pacific region in general, and China in particular, also boosted exports of services. Trade in services continues to expand rapidly, as Hong Kong's role as a major regional trade, finance and business services centre in the region deepens further. Apart from trade-related services and tourism, there has also been a rising demand for professional and other support services. Offshore trading, cross-border land transport services and other business services, including exports of construction, legal, accountancy, computer and management consultancy services to China and other East Asian economies, have all shown rapid increases.

Between 1985 and 1995, exports of services grew at an average annual rate of nine per cent in real terms, and imports of services, at 10 per cent. The major components of Hong Kong's trade in services are shipping, civil aviation, tourism, and various financial services. The shares of transportation services in total exports and total imports of services were 38 per cent and 27 per cent, respectively, in 1994. The

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