ENG-2016 — Page 67

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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, accounted for only 1 per cent of GDP in 2015, while those of the construction sector and electricity, gas and water stood at 5 per cent and 1 per cent respectively.

Hong Kong has become increasingly service-oriented since the 1980s. 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 2015, the services sector contributed 93 per cent directly to GDP. Financing and insurance, real estate, professional and business services became the largest services sector, accounting for 28 per cent of GDP. This was followed by import/export, wholesale and retail trades, and accommodation and food services (26 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 24.8%

Other sectors 26.7%

1995

Transport, storage and communications

9.4%

2015

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

Financing

and insurance, real estate, professional and business services 28.5%

Finance, insurance, real estate and business services 22.6%

10.0%

Community, social and personal services

16.5%

Import/export, wholesale and retail trades, accommodation and food services 26.0%

Other

sectors 18.1%

Public administration, social and

personal services 17.5%

The financing and insurance, real estate, professional and business services sector and the import/export, wholesale and retail trades, accommodation and food services sector remained the two largest service sectors in terms of net output in 2015.

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

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