Macau’s economy recorded a real fall of 0.4 percent in 2014, due to the sharp decrease in gross gaming revenue and visitor spending, reported the region’s Statistics and Census Bureau.
After a rise of 10.5 percent in the first half, followed by a decrease of 10.2 percent in the second half, Macau’s GDP reached a total of 443.3 billion patacas (US$55.4 billion) and per capita GDP stood at 713,514 patacas (US$89,300).
The downturn was mainly due to the fall of 7.9 percent in gross gaming revenue, and other tourist services fell 0.3 percent whilst remaining components rose, including gross fixed capital formation, or investment, which grew 35.2 percent.
The satisfactory performance of domestic demand offset the negative impact of the decline in most exports of gaming and tourism services, so that the economy contracted only slightly during the year.
In the fourth quarter, Macau’s real GDP fell by 17.2 percent in annual terms, following a fall of 28.9 percent in gaming revenue in the quarter and 12.3 percent in the third quarter.
Exports of other tourist services decreased 15.7 percent due to reduced spending by visitors in spite of the increase in their number, the bureau said.
For the other components, the fourth quarter saw significant increases – 42.7 percent in exports of goods, 27.7 percent in gross fixed capital formation, 4.6 percent in private consumption and 5.9 percent in government expenditure.
However, despite the favourable performance of these economic indicators, Macau’s economy contracted by 17.2 percent in real terms due to the year on year decrease of 26 percent in exports of services.
The percentage changes of GDP in each of the first three quarters of 2014 were revised to 13.1 percent, 8.0 percent and -2.3 percent, respectively, and the implicit GDP deflator rose by 8.5 percent.
Economic growth in 2013 was revised downwards from 11.9 percent to 10.7 percent. (macauhub/MO)