The services sector has grown significantly in the past two decades. Its share of Hong Kong's Gross Domestic Product (GDP) rose from 70.5 per cent in 1985 to 90 per cent in 2004. In 2005, 86 per cent of total employment was in the services sector. Hong Kong has become one of the most service-oriented economies in the world. Much of this growth was fuelled by the demand for producer services by Hong Kong's globalised production network and the trend towards sourcing goods and services globally.

In 2005, Hong Kong's total services trade amounted to $731.9 billion, making it the world's 16th largest trading entity in terms of value of services trade. In the same year, Hong Kong exported $479.5 billion worth of services, bearing a ratio of 34.7 per cent of GDP. Hong Kong ranked fourth after Japan, the Mainland and India in the region in terms of absolute value of exports of services. In the global league table of exports of services, Hong Kong ranked 11th in 2005.

Hong Kong's exports of services comprise mainly merchanting and other trade-related services, transport and travel services, which accounted for 34 per cent, 32 per cent and 16 per cent respectively of the total value in 2005. The corresponding share for exports of financial services, insurance and other services was 18 per cent. In addition to being a net exporter of services in overall terms, analysed by component of services trade, in 2005 Hong Kong recorded a surplus in merchanting and other trade-related services ($145 billion) and transport services ($78.8 billion).