ENG-2009 — Page 89

The Economy | 45

service sectors, financing and insurance showed the fastest cumulative growth of 58 per cent, a testament to Hong Kong's drive as an international financial centre.

Import and export trade also performed impressively, with a 30 per cent increase in the value-added component of its trading activities over the period. This, together with a notable growth of 13 per cent in transport and storage services, underlined the competitiveness of Hong Kong's trading and logistics sector. The increase of 25 per cent in wholesale and retail trades, as well as the steeper growth of 26 per cent in restaurants and hotels, were underpinned by the strength of domestic demand and the vibrancy in inbound tourism brought about by the continued expansion in the Individual Visitor Scheme.

In 2008, the services sector contributed 92 per cent to GDP. The wholesale, retail and import/export trades, restaurants and hotels remained the largest service sector, accounting for 28 per cent of the GDP. This was followed by finance, insurance, real estate and business services (27 per cent), community, social and personal services (18 per cent), and transport, storage and communications (8 per cent) (Chart 5). More specifically, of the four key industries, trading and logistics accounted for 26 per cent of value-added contribution to GDP in 2008, financial services 16 per cent and tourism 3 per cent. The corresponding contribution of professional and other producer services was 12 per cent.

Chart 5

Gross Domestic Product by Major Service Sector

1988

Transport,

Transport, storage and

communications

8.7%

Wholesale, retail and import/export trades,

restaurants and hotels 23.6 %

storage and

communications

7.7 %

2008

Wholesale, retail and import/export trades, restaurants and hotels 28.2 %

Finance, insurance, real estate

and business

services

17.9 %

Finance, insurance,

Other

Community, social and

sectors

personal services

36.3 %

real estate and business services 26.7 %

Community, social and personal services 17.9%

13.5 %

Other

sectors

19.5%

The wholesale, retail and import/export trades, restaurants and hotels sector, and the finance, insurance, real estate and business services sector remained the two largest service sectors in terms of net output in 2008.

The profound structural change in the economy towards the services sector was also borne out by a shift in the sectoral composition of employment. Over the past two decades, the share of the services sector in total employment went up from 59.7 per cent in 1989 to 82 per cent in 1999 and 88 per cent in 2009. As for individual services, wholesale, retail and import/export trades, accommodation and food services accounted for 32.8 per cent of the total in 2009. This was followed by public administration, social and personal services with a share of 25.2 per cent;