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The Economy

The Services Sector

The services sector is where Hong Kong's competitive advantage lies. Over the past five years. between 2008 and 2013, the value-added part of the services sector grew by a cumulative 16 per cent in real terms, outpacing the corresponding 14 per cent growth of the overall economy. Among the constituent service sectors, wholesale and retail trades showed the fastest cumulative growth of almost 70 per cent. This, coupled with the 11 per cent growth in accommodation and food services, reflected the solid domestic demand and vibrant inbound tourism. Notwithstanding the global financial crisis and euro debt crisis during this period, financing and insurance recorded solid growth of 25 per cent, a testament to Hong Kong's competitive edge as an international financial centre. Import and export trade saw a 13 per cent increase over the period, while transport and storage services grew steadily by 10 per cent, underlining the competitiveness of Hong Kong's trading and logistics sector.

In 2012, the services sector directly contributed 93 per cent to GDP. Import/export, wholesale and retail trades, and accommodation and food services remained the largest service sectors, together accounting for 29 per cent of GDP. This was followed by financing and insurance, real estate, professional and business services (27 per cent), public administration, social and personal services (17 per cent), transportation, storage, postal and courier services, and information and communications (10 per cent) (Chart 5).

Chart 5

Transport, storage and

communications

9.1%

Gross Domestic Product by Major Service Sector

1992

Wholesale, retail and import/export trades, restaurants and hotels 24.2%

Transportation, storage, postal and courier services, information and communications

9.5%

2012

Import/export, wholesale and retail trades, accommodation and food services

29%

Finance,

insurance,

real estate

and business

services

22.6%

Community, social and personal services 14.5%

Other

sectors 29.5%

Financing and insurance, real estate, professional and business services 27.4%

Public administration, social and personal services 16.8%

Other sectors 17.3%

The import/export, wholesale and retail trades, accommodation and food services sector, and the financing and insurance, real estate, professional and business services sector remained the two largest service sectors in terms of net output in 2012.

Note: Due to adoption of the Hong Kong Standard Industrial Classification Version 2.0, the series from 2000 onwards are not strictly comparable with those of the earlier years.

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