ENG-2003 — Page 77

THE ECONOMY

On trade in services, exports and imports of services both grew by an annual average of 7 per cent in real terms over the past two decades. In 2002, civil aviation, travel and tourism, trade-related services, and various financial and banking services were the largest components of trade in services. Within exports of services, offshore trading and merchandising services have overtaken transportation as the most important component in 2002, accounting for 35 per cent of the total value in that year. For transportation, the corresponding share was 30 per cent. This was followed by travel and tourism (with a share of 17 per cent), and financial and banking services (6 per cent). As to imports of services, travel and tourism remained the largest component, accounting for 50 per cent of the total value in 2002. Transportation was in the second place (with a share of 26 per cent), followed by offshore trading and merchandising services (7 per cent), and financial and banking services (3 per cent).

Net output or value added of the services sector as a whole rose visibly, by an annual average of 6 per cent in value terms between 1992 and 2002. Amongst the major constituent sectors, net output of community, social and personal services had the fastest growth (at an average annual rate of 9 per cent). This was followed by transport, storage and communications (6 per cent); the wholesale, retail and import/export trades, restaurants and hotels (5 per cent); and financing, insurance, real estate and business services (4 per cent).

In terms of value added contribution to GDP, the wholesale, retail and import/export trades, restaurants and hotels continued to be the largest in 2002, with a share of 27 per cent. This was followed by community, social and personal services (22 per cent), financing, insurance, real estate and business services (22 per cent), and transport, storage and communications (11 per cent) (Chart 4).

Chart 4

Gross Domestic Product by major service sector

Transport, storage and communications

7.7%

Financing, insurance,

real estate

and

business

services

22.5%

1982

2002

Wholesale, retail and import/export trades,

restaurants and hotels 19.9%

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

Transport. storage and communications

26.9%

10.6%

Financing, insurance,

real estate

Community, social and personal services 15.1%

Others 34.8%

and business services 22.2%

Community, social and personal services 22.2%

Over the past two decades, community, social and personal services had a more distinct increase in net output than other major service sectors. Yet ranked in terms of value added contribution to GDP, the wholesale, retail and import/export trades, restaurants and hotels remained the largest service sector in 2002.

Others

18.1%

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