ENG-2018 — Page 70

Chart 2

3

The Economy

Gross Domestic Product

Index (1998 = 100)

250

Real GDP (left scale)

US$

50,000

45,000

Per capita GDP at current market prices (right scale)

40,000

200

35,000

30,000

150

25,000

20,000

15,000

100

10,000

5,000

50

0

1998

2000

2002 2004 2006

2008 2010 2012 2014 2016 2018

Over the past two decades, the Hong Kong economy grew an average of 3.7 per cent annually, faster than most high-income economies.

The corresponding figures for Hong Kong's stock of direct investment assets were likewise huge, at $16,469 billion, or 579 per cent of GDP. As an international financial centre with huge cross-territory fund flows, its external financial assets and liabilities were also substantial, at $42,933 billion and $32,794 billion respectively at the end of 2018. The corresponding ratios to GDP were 1,510 per cent and 1,154 per cent. Reflecting the city's robust international investment position, its net external financial assets amounted to $10,140 billion at the end of 2018, equivalent to 357 per cent of GDP.

Gross National Income (GNI), comprising GDP and net external primary income flow, stood at $2,985 billion in 2018, higher than the corresponding GDP by 5 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, at $1,628 billion and $1,486 billion respectively, equivalent to 57 per cent and 52 per cent of GDP respectively. This was attributable to the huge volumes of Hong Kong's outward and inward 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 predominantly a city economy.

Secondary production comprises manufacturing, construction and the supply of electricity, gas and water. In 2017, the value-added contribution of manufacturing accounted for only 1 per cent of GDP, while the construction sector and electricity, gas and water contributed 5 per cent and 1 per cent respectively. As for the share in total employment, manufacturing constituted only 2 per cent in 2018. The construction sector and electricity, gas and water took up 9 per cent and less than 1 per cent respectively.

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