ENG-2019 — Page 72

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The Economy

exports and imports of services, the ratio of total trade to GDP was even higher, at 353 per cent in 2019, up from 220 per cent in 1999.

As an international financial centre with huge cross-territory fund flows, Hong Kong has substantial external financial assets and liabilities, of $43,760 billion and $31,588 billion respectively at the end of 2019. The corresponding ratios to GDP were 1,527 per cent and 1,102 per cent. Reflecting the city's robust international investment position, its net external financial assets amounted to $12,172 billion at the end of 2019, equivalent to 425 per cent of GDP.

Hong Kong is also one of the most preferred destinations for external direct investment. The stock of direct investment liabilities is enormous, at $16,173 billion in market value at the end of 2019, equivalent to 564 per cent of GDP. The corresponding figures for Hong Kong's stock of direct investment assets were likewise huge, at $15,598 billion, or 544 per cent of GDP.

Gross National Income, comprising GDP and net external primary income flow, stood at $3,014 billion in 2019, higher than the corresponding GDP by 5.2 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, at $1,671 billion and $1,522 billion respectively, equivalent to 58 per cent and 53 per cent of GDP respectively. This was attributable to the huge stocks 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 2018, the value-added contributions of manufacturing and of electricity, gas and water each accounted for only 1 per cent of GDP, while the construction sector contributed 4 per cent. As for the share in total employment in 2019, manufacturing constituted only 2 per cent, and electricity, gas and water less than 1 per cent. Construction took up 9 per cent.

The services sector is the mainstay of the Hong Kong economy, making up 93 per cent of GDP in 2018. The largest services sector continued to be financing and insurance, real estate, professional and business services, accounting for 30 per cent of GDP. This was followed by import/export, wholesale and retail trades, accommodation and food services (25 per cent); public administration, social and personal services (18 per cent); and transportation, storage, postal and courier services, and information and communications (9 per cent). In terms of total employment, services accounted for 89 per cent in 2019. In particular, import/export, wholesale and retail trades, accommodation and food services accounted for 28 per cent of total employment, followed by public administration, social and personal services (28 per cent); financing and insurance, real estate, professional and business services (21 per cent); and transportation, storage, postal and courier services, information and communications (11 per cent) (chart 3).

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