Overview
Hong Kong has historically improved its economic competitiveness through liberalization and diversification of its economy. The city is responsive to embrace the latest global economic trends. Moreover, Hong Kong is committed to the integrity and depth of its economy by creating synergy between the established and emerging economic sectors. Telecommunications, IT and e-commerce are the major components of the new Hong Kong economy.
Gross Domestic Product
(GDP) by Economic Activity at Current Prices
Percentage (%) Contribution
to GDP at Factor Cost
| Economic activity | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | |
| Agriculture and fishing | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | |
| Mining and quarrying | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Manufacturing | 9.1 | 8.3 | 7.3 | 6.4 | 6.0 | 5.7 | 5.8 | |
| Electricity, gas and water | 2.6 | 2.5 | 2.6 | 2.6 | 3.0 | 3.2 | 3.2 | |
| Construction | 4.8 | 5.3 | 5.7 | 5.7 | 5.9 | 5.7 | 5.2 | |
| Services | 83.3 | 83.7 | 84.3 | 85.1 | 84.9 | 85.3 | 85.7 | |
| Wholesale, retail and import/export trades, restaurants and hotels | 26.3 | 26.8 | 26.8 | 25.7 | 25.0 | 25.2 | 26.4 | |
| Wholesale and retail trades | 5.0 | 4.6 | 4.6 | 4.3 | 3.7 | 3.9 | 3.7 | |
| Import/export trade | 17.2 | 18.4 | 18.5 | 18.0 | 18.3 | 18.2 | 19.6 | |
| Restaurants and hotels | 4.1 | 3.8 | 3.7 | 3.5 | 3.0 | 3.1 | 3.1 | |
| Transport, storage and communications | 9.6 | 10.0 | 9.8 | 9.1 | 9.2 | 9.6 | 10.2 | |
| Transport and storage | 7.3 | 7.4 | 7.1 | 6.7 | 7.0 | 7.6 | 8.0 | |
| Communications | 2.3 | 2.6 | 2.6 | 2.5 | 2.3 | 2.0 | 2.2 | |
| Financing, insurance, real estate and business services | 27.0 | 24.8 | 25.5 | 26.5 | 24.6 | 23.9 | 23.7 | |
| Financing and insurance | 10.7 | 10.6 | 11.1 | 11.1 | 10.5 | 11.9 | 12.7 | |
| Real estate | 12.3 | 9.8 | 10.1 | 10.7 | 9.5 | 7.4 | 6.3 | |
| Business services | 4.0 | 4.4 | 4.4 | 4.7 | 4.6 | 4.6 | 4.7 | |
| Community, social and personal services | 15.6 | 16.9 | 17.2 | 17.4 | 19.3 | 20.9 | 20.5 | |
| Ownership of premises | 11.9 | 13.0 | 12.7 | 13.5 | 14.2 | 13.8 | 12.6 | |
| Adjustment for financial intermediation services indirectly measured | -7.2 | -7.7 | -7.7 | -7.1 | -7.4 | -8.0 | -7.8 | |
| GDP at factor cost | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
Further liberalization on all sectors of telecommunications market in 1999 generated new investments worth more than USD 1.6 billion in the same year. The telecommunications network in Hong Kong was estimated to be directly responsible for 1.4% of the city's GDP in 1999. Investment in science and technology R&D represented .3% of Hong Kong's USD 160-plus-billion annual GDP in comparison with 2.5% of Singapore's USD 70-plus-billion annual GDP in the mid 1990s. The R&D investment in Hong Kong should increase favorably with the opening of the Cyberport and five science parks. A research indicates that the value of e-business transactions will grow from USD 2 billion in 2000 to USD 70 billion in 2004 in Hong Kong. Facts can present the reality of the IT and e-commerce industry in Hong Kong. 10 percent of the USD 601 million spent online was spent in the B2C sector in 2000. Meanwhile, total Hong Kong IT export reached USD 14,711 million in 2001. In 1997, only 8 percent of software and services was exported overseas. More than 8 million e-cash cards in circulation generate annual transactions of USD 2.2 billion in 2001. Currently, there are over 500 telecom-related establishments in Hong Kong providing employment for 30,000 people. The Hong Kong Government has established the HK$5 billion (USD 641 million) Innovation and Technology Fund which has encouraged private sector collaboration with universities in technological research. (5) For Hong Kong, consolidation suits the e-commerce sector while the IT sector may need growth before consolidation.
Next: National ICT Polices