ENG-2019 — Page 77

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The Economy

Gross Domestic Product and Employment by Major Service Sector

Gross Domestic Product

2018

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

9.3%

Import/export, wholesale and retail

trades, accommodation

and food services 24.7%

Transportation, storage, postal and courier services,

information and

communications

Financing and insurance, real estate, professional and business services 30.2%

10.9%

Public administration, social and

Employment 2019

Financing and insurance, real estate, professional and business services 21.3%

personal services 18.5%

Other sectors 17.3%

Import/export, wholesale and retail trades, accommodation and food services 28.4%

Other sectors 11.4%

Public administration, social and personal services 28%

The services sector continued to be the key driver of the economy.

It is worth noting that although the manufacturing sector accounts for only a small share of the economy in terms of value added and employment, Hong Kong's manufacturers are versatile and resilient in coping with the changing global and regional economic landscapes. The city's productive capacity has effectively expanded over the years, thanks to increased supply-chain arrangements involving the Mainland and other neighbouring economies and continued enhancement of innovation and technology (I&T). The well-established links between Hong Kong's offshore productive capacity and the local economy underpin the growth of its services. sector, especially the rapid development of trading, financial and other support services.

Notwithstanding the local social incidents in the second half of 2019, Hong Kong continues to hold its own as an international financial centre and one of the world's best places to do business. Given its strong competitive edge, the services sector is well positioned to benefit from the vibrant development of emerging Asian economies, particularly the Mainland, which is set to remain the global growth engine in the years to come.

Economic Links with Mainland

Economic ties between Hong Kong and the Mainland are stronger than ever. The flow of goods, services, people and capital between the two places, and between the Mainland and the world through Hong Kong, have been flourishing alongside the continued reform and opening up of the Mainland. The vibrant activities have brought significant mutual benefits to both Hong Kong and the Mainland.

With its total merchandise trade surging from US$361 billion in 1999 to US$4.6 trillion in 2019, the Mainland plays a prominent role in driving global economic growth. Hong Kong has benefited substantially from the Mainland's phenomenal external trade growth. In 2019, visible

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