PRIMARY production, including agriculture, fisheries, mining and quarrying, is insignificant in terms of both value-added contributions to Hong Kong’s GDP and share in total employment, as the SAR is predominantly a city economy. Secondary production comprises manufacturing, construction, and supply of electricity, gas and water. The value-added contribution of manufacturing, which has diminished in relative importance since the early 1980s, was only 1 percent in 2014, while those of the construction and electricity, and gas and water sectors stood at 4 percent and 2 percent respectively.

Hong Kong has become increasingly service-oriented since the ’80s. The mainland’s open-door policy and economic reforms have unleashed ample business opportunities for a wide range of service providers. Leveraging its geographical proximity and cultural ties with the mainland as well as its strong market institutions, Hong Kong has reorientated itself towards service activities and moved up the value chain.

In 2014, the services sector contributed 93 percent directly to GDP. Import/export, wholesale and retail trade, as well as accommodation and food services remained the largest service sectors, accounting for 28 percent of GDP. These were followed by financing and insurance, real estate, professional and business services (27 percent), public administration, social and personal services (17 percent), and transportation, storage, postal and courier, and information and communications services (10 percent).

Thanks to increased supply-chain arrangements involving the mainland and other neighboring economies, Hong Kong’s productive capacity has effectively expanded. Its well-established linkages with the mainland economy have underpinned the growth of Hong Kong’s services sector, especially the rapid development of trading, financial and other supporting services.