Macau’s GDP shrinks 13.3 pct in the 1st quarter

31 May 2016

Macau’s economy experienced a real contraction of 13.3 percent in the first quarter of 2016 due to a continued decline in exports of services and the reduction of investment, reported the Statistics and Census Bureau.

In addition to a decline of 17.1 percent in exports of gaming services, domestic demand weakened, having registered decreases of 2.3 percent, 31.4 percent and 19.9 percent in private consumption, investment and in imports of goods, respectively.

The government’s final consumption expenditure was the only major component of expenditure that grew, rising 1.5 percent against the first quarter of 2015.

The implicit gross domestic product (GDP) deflator (which measures overall inflation) grew by 1.9 percent in annual terms.

The decline in gross fixed capital formation, or investment, was significant, having fallen 31.9 percent over the first quarter of 2015 due to a substantial decline in private sector investment, which decreased 33.0 percent.

This decrease stemmed from the slowdown in the pace of construction of large tourism and entertainment facilities, because of the high base of comparison with the last year, with drops of 35.0 percent in construction and 18.9 percent in equipment. (macauhub/MO)