ENG-1995 — Page 78

THE ECONOMY

Transport, storage and communication

7.4%

Gross Domestic Product by major service sector

1980

Wholesale, retail, import/export trades, restaurants and hotels 21.4%

1994

Financing, insurance, real

Transport,

estate and

storage and communication

business services 26.1%

9.7%

Financing,

insurance, real

estate and

business services

23.0%

Community, social and personal

Community, social

Others 36.1%

services

15.6%

and personal services 12.1%

Others 21.5%

Wholesale,

retail, import/export trades,

restaurants and hotels 27.0%

The distributive and catering trades as well as financing, insurance, real estate and business services remained the largest service sectors in terms of GDP.

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corresponding shares for travel services were 26 per cent and 47 per cent. Other trade-related services such as offshore trading and purchasing/merchandising services accounted for 21 per cent of the total value of exports of services and seven per cent of the total value of imports of services. The corresponding shares for financial and banking services were seven per cent and four per cent.

Between 1984 and 1994, the net output or value added component of the financing, insurance, real estate and business services sector showed the fastest increase; followed by the wholesale, retail and import/export trades, restaurants and hotels; and transport, storage and communication. Their respective average annual growth rates were 21 per cent, 17 per cent and 17 per cent. The combined value added calculation for the service sectors as a whole rose strongly, at an average of 17 per cent per annum over this period.

The wholesale, retail and import/export trades, restaurants and hotels was the largest employer, accounting for 28 per cent of the total employment in 1995. Taken together, the services sector accounted for 72 per cent of the total employment in 1995.

Manufacturing

Manufacturing firms in Hong Kong are well known for their versatility. The existence of many small establishments, providing an extensive local sub-contracting system, has greatly aided producers in coping with changes in demand. The increasing use of outward processing facilities in China has enhanced production flexibility and helped to maintain the price competitiveness of Hong Kong's products. The bulk of Hong Kong's manufacturing output is eventually exported.