ENG-2006 — Page 75

Chart 5

Transport,

Employment by major services sector

1986

Wholesale, retail and

import/export trades,

restaurants and hotels 24.0%

storage and

communications

8.2%

Finance, insurance, real estate

and business

services

6.0%

Community,

social and

personal

services

17.0%

Others 44.8%

2006

Wholesale, retail and

import/export trades, restaurants and hotels 34.0%

Others 13.8%

Transport, storage and communications

10.5%

Finance, insurance, real estate and business

services 15.5%

The Economy | 47

Community, social and personal services

26.2%

Wholesale, retail and import/export trades, restaurants and hotels employed the most people in 2006.

Note: The compilation methodology of composite employment estimates was reviewed in June 2005. Employment figures from 1996 onwards have been revised accordingly. They are therefore not strictly comparable with those of earlier years.

The Manufacturing Sector

Hong Kong's manufacturing sector is expected to continue to be versatile and flexible in coping with changing market demands. Its output has grown considerably, aided by

by its increased manufacturing arrangements with the Mainland. Manufacturing efficiency and product quality are also expected to be upgraded continuously with the help of modern technology. Hong Kong manufacturers are also producing more knowledge-based products as well as products with a higher value- added content. Although the manufacturing sector's direct value-added contribution is not a big contributor to the economy, its well-established links with the Mainland economy provide huge opportunities for Hong Kong's services sector to grow.

Economic Links between Hong Kong and the Mainland

Since the start of the Mainland's open door policy in 1978, Hong Kong's economic links with the Mainland have grown stronger by the day bringing enormous benefits to both places over the past 30 years. The huge flow of goods, services, people and capital between Hong Kong and the Mainland and between the Mainland and the world via Hong Kong have created remarkable financial growth and job opportunities in both Hong Kong and the Mainland.

Visible trade between Hong Kong and the Mainland has grown 216-fold since 1978, at an average annual rate of 21 per cent in value terms. Growth remained impressive in 2006, at 14 per cent (Chart 6). Along with the sustained strong growth in bilateral trade, Hong Kong and the Mainland ranked as the 11th and the third largest trading entity in the world.

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