MACAO, Feb. 29 (Xinhua) — Gross Domestic Product (GDP) of Macao shrank by 4.7 percent in real terms for 2019, the special administrative region (SAR)’s statistic department said here on Saturday.
The latest report from the Statistics and Census Service (DSEC) showed that Macao’s GDP amounted to 434.7 billion patacas (about 54.2 billion U.S. dollars) and per-capita GDP was 645,438 patacas (about 79,977 dollars).
The GDP dropped by 8.1 percent year-on-year in real terms in the fourth quarter of 2019, a steeper decline compared to the previous quarter, which was mainly attributable to a further decrease in exports of services.
The DSEC report added that the implicit deflator of GDP, which measures overall changes in prices, rose by 2.6 percent in 2019 and 2.5 percent in the fourth quarter.
Macao’s economy has experienced negative growth since the first quarter of 2019, owing to decreases in investment and exports of services. Domestic demand weakened, down by 4.6 percent year-on-year. The gross fixed capital formation fell by 20.1 percent as private construction investment showed a drastic decline.
Despite an increase in total employment and employment earnings, the growth in private consumption expenditure slowed to 2.9 percent due to the cautious consumer spending and economic uncertainties.
The report said the SAR government’s final consumption expenditure rose by 3.9 percent year-on-year, representing a 0.4 percentage point rise. The compensation of employees and net purchases of goods and services went up by 2.4 percent and 5.7 percent respectively.
With respect to external demand, the total spending of visitors decreased in spite of a growth in visitor arrivals, and gross revenue from games of chance dropped at an accelerating pace since the third quarter.
The exports of services slid by 3.4 percent year-on-year, with exports of gaming services and other tourism services reducing by 4.0 percent and 5.7 percent respectively. Besides, exports of goods fell by 8.3 percent.
In terms of GDP structure by major components, the relative importance of net exports of goods and services to GDP was 50.1 percent in 2019, up by 0.5 percentage points year-on-year. The relative importance of domestic demand to GDP was 49.9 percent, with the share of investment falling by 3.0 percentage points.
The proportions of private consumption expenditure and government final consumption expenditure rose by 1.6 percentage points and 0.9 percentage points respectively.