ENG-2000 — Page 76

THE ECONOMY

growth rate of 3.9 per cent in real terms. In 2000, it reached US$24,000 at current market prices, which was amongst the highest in Asia, next only to Japan.

Chart 1

Gross Domestic Product (year-on-year rate of change in real terms)

Per cent

15

10

5

0

-5

GDP

Per capita GDP

-10

1980 1982 1984

1986 1988 1990 1992

1994

1996

1998

2000

44

Over the past two decades, the Hong Kong economy has been growing strongly, with GDP up by an annual average of 5.4 per cent and per capita GDP by an annual average of 3.9 per cent in real terms. In 2000, GDP attained a marked increase of 10.5 per cent in real terms, much faster than the 3.1 per cent growth in 1999, and represented the fastest growth since 1987.

Reflecting the increased external orientation of the economy, trade in goods and trade in services grew substantially, by eight times and three times respectively over the past two decades. In 2000, the value of visible trade (comprising re-exports, domestic exports and imports of goods) amounted to $3,234 billion, corresponding to 254 per cent of GDP. This was considerably higher than the ratios of 148 per cent in 1980 and 221 per cent in 1990. If the value of exports and imports of services was also taken into account, the ratio was even higher, at 295 per cent in 2000, as against 181 per cent in 1980 and 260 per cent in 1990.

The Gross National Product (GNP), comprising GDP and net external factor income flows, stood at $1,293 billion in 2000. This was 1.7 per cent higher than GDP in the same year. Reflecting the highly externally oriented nature of the Hong Kong economy, both inflows and outflows of external factor income remained very substantial, at $411 billion and $390 billion respectively in 2000, equivalent to 32 per cent and 31 per cent of GDP.

Contributions of the Various Economic Sectors

The relative importance of various economic sectors can be assessed in terms of their value-added contributions to GDP and total employment. By both measures, primary