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The Economy

Trade links with other parts of the world have grown extensively. Trade in goods and services has more than doubled in real terms over the past two decades. The total value of the goods trade compiled under the GDP accounting framework reached $8,532 billion in 2020, equivalent to 317 per cent of GDP, far higher than the ratio of 203 per cent in 2000. Including the value of exports and imports of services, the ratio of total trade to GDP was even higher, at 352 per cent in 2020, up from 248 per cent in 2000.

As an international financial centre with huge cross-territory fund flows, Hong Kong has substantial external financial assets and liabilities, of $48,768 billion and $32,077 billion. respectively at the end of 2020. The corresponding ratios to GDP were 1,814 per cent and 1,193 per cent. Reflecting the city's robust international investment position, its net external financial assets amounted to $16,690 billion at the end of 2020, equivalent to 621 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 $15,665 billion in market value at the end of 2020, equivalent to 583 per cent of GDP. The corresponding figures for Hong Kong's stock of direct investment assets were likewise huge, at $16,200 billion, or 603 per cent of GDP.

Gross National Income, comprising GDP and net external primary income flow, stood at $2,837 billion in 2020, higher than the corresponding GDP by 5.5 per cent. The difference represented a net inflow of external primary income. Measured at current market prices, inflows and outflows of external primary income were both substantial, at $1,539 billion and $1,390 billion respectively, equivalent to 57 per cent and 52 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 2019, the value-added contributions of manufacturing and of electricity, gas and water supply 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 2020, manufacturing constituted only 2 per cent, and electricity, gas and water supply less than 1 per cent. Construction took up 8 per cent.

The services sector is the mainstay of the Hong Kong economy, making up 93 per cent of GDP in 2019. The largest services sector continued to be financing and insurance, real estate, professional and business services, accounting for 31 per cent of GDP. This was followed by import/export, wholesale and retail trades, accommodation and food services (22 per cent); public administration, social and personal services (20 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 2020. In particular, public administration, social and personal services accounted for 29 per cent of total employment, followed by

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