ENG-2017 — Page 76

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The Economy

substantial, at $42,735 billion and $31,841 billion respectively at the end of 2017. The corresponding ratios to GDP in 2017 were 1,605 per cent and 1,196 per cent. Reflecting Hong Kong's robust international investment position, its net external financial assets amounted to $10,894 billion at the end of 2017, equivalent to 409 per cent of GDP.

Chart 2

Gross Domestic Product

Index (1997 = 100)

250

U$$

50,000

Real GDP (left scale)

Per capita GDP at current market prices (right scale)

45,000

40,000

200

35,000

30,000

150

25,000

20,000

15,000

100

10,000

5,000

50

1997

1999

2001

2003 2005 2007 2009

2011 2013 2015 2017

Over the past two decades, the Hong Kong economy grew an average of 3.3 per cent in real terms, faster than most high-income economies.

The Gross National Income (GNI), comprising GDP and net external primary income flow, stood at $2,773 billion in 2017. This was higher than the corresponding GDP by 4.2 per cent. The difference represented a net inflow of external primary income. In gross terms, inflows and outflows of external primary income were both substantial in 2017, at $1,401 billion and $1,290 billion respectively, equivalent to 53 per cent and 48 per cent of GDP respectively. This was attributable to the huge volumes of Hong Kong's inward and outward investment.

Contributions of Various Economic Sectors

Primary production, including agriculture, fisheries, mining and quarrying, is insignificant in terms of both value-added contribution to GDP and share in total employment, as Hong Kong is a predominantly city economy.

Secondary production comprises manufacturing, construction, and supply of electricity, gas and water. In 2016, the value-added contribution from manufacturing accounted for only 1 per cent of GDP, while those of the construction sector and electricity, gas and water stood at 5 per cent and 1 per cent respectively.

The services sector is the mainstay of the Hong Kong economy. The further opening up of the Mainland and its deepening reforms have unleashed ample business opportunities for a wide range of service providers. With its geographical proximity and cultural ties with the Mainland as well as its strong market institutions, Hong Kong has leveraged its competitive strengths in services in its continuous move towards high value-added activities.

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