Macau’s economy sees first quarterly contraction in five years

1 December 2014

Macau’s economy posted negative quarterly growth for the first time in five years in the third quarter of -2.1 percent in real terms over the same quarter of 2013, the region’s Statistics and Census Bureau said.

The fall was due to the substantial drop in exports of services, and in the case of gaming there was a contraction of 12.3 percent and of 0.7 percent in other tourist services.

On the positive side, consumer expenditure, final consumption expenditure of the government and private investment rose 7.2 percent, 8.1 percent and 41.5 percent respectively, confirming the consistency of growth in domestic demand.

The implicit GDP deflator of the third quarter, which measures overall inflation, totalled 8.9 percent in annual terms, the Bureau said.

Gross fixed capital formation, or investment, continued to rise (+38.1 percent in annual terms) due to construction of several tourism and major entertainment facilities, helping to reduce the extent of the economic downturn.

In 2011, 2012 and 2013 Macau posted real economic growth of 21.3 percent, 9.1 percent and 11.9 percent, respectively. (macauhub/MO)