ENG-1998 — Page 78

THE ECONOMY

substantial, estimated at $461 billion and $453 billion respectively, each amounting to over one-third of GNP.

Contributions of the Various Economic Sectors

The relative importance of the various economic sectors can be reflected in their contributions to the GDP and to total employment. In the absence of natural resources, the contribution of primary production (agriculture and fisheries, mining and quarrying) to GDP and employment is negligible in Hong Kong.

Chart 2

Gross Domestic Product by broad economic sector

1980

1997

Secondary production 31.6%

Secondary production 14.7%

Primary production 1.0%

Primary production 0.1%

Tertiary production 67.5%

Tertiary production 85.2%

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

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Within secondary production (comprising manufacturing; construction; and supply of electricity, gas and water), the contribution of the manufacturing sector to GDP declined significantly, from 24 per cent in 1980 to 18 per cent in 1990, and further to only 7 per cent in 1997. This was mainly on account of the continued development of the services sector in Hong Kong as well as the on-going relocation of the more labour-intensive manufacturing processes across the border since the mid-1980s. On the other hand, the share of the construction sector in GDP, having fallen from 7 per cent in 1980 to around 5 per cent in 1990, edged up to 6 per cent in 1997. The combined share of the supply of electricity, gas and water, at 2 per cent in 1997, was broadly similar to the average level of 3 per cent recorded over the past 10 years.

The open-door policy and economic reforms in the Mainland have not only provided a huge production hinterland and market outlet for local manufacturers, but have also created an abundance of business opportunities for a wide range of service activities in Hong Kong. These service activities include freight transport,