ENG-2015 — Page 66

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The Economy

Secondary production comprises manufacturing, construction, and supply of electricity, gas and water. The value-added contribution from manufacturing, which has diminished in relative importance since the early 1980s, was only 1 per cent in 2014, while those of the construction sector and electricity, gas and water stood at 4 per cent and 2 per cent respectively.

Hong Kong has become increasingly service-oriented since the '80s. The Mainland's open-door policy and economic reforms have unleashed ample business opportunities for a wide range of service providers. Leveraging its geographical proximity and cultural ties with the Mainland as well as its strong market institutions, Hong Kong has reorientated itself towards service activities and moved up the value chain.

In 2014, the services sector contributed 93 per cent directly to GDP. Import/export, wholesale and retail trades, and accommodation and food services remained the largest service sector, accounting for 28 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 3).

Chart 3

Gross Domestic Product by Major Service Sector

Wholesale, retail and import/export trades, restaurants and hotels 24.5%

Other sectors 26.3%

1994

Transport, storage and communications

9.1%

2014

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

Financing

and insurance, real estate, professional and business services 27.5%

Finance, insurance, real estate and business services 24.9%

9.8%

Community, social and personal services 15.2%

Import/export, wholesale and retail trades,

Other

sectors

Public administration, social and

accommodation and food services 27.7%

17.8%

personal services

17.2%

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 2014.

Note: Due to the 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.

It is also worth noting that although the manufacturing sector's direct value-added contribution to the economy is not large, Hong Kong's manufacturers continue to be versatile and resilient in coping with the changing global and regional economic landscapes. Thanks to increased supply-chain arrangements involving the Mainland and other neighbouring

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