The fall in investment in construction, coupled with a contraction in services exports, meant that Macau’s economy contracted in the third quarter of 2018 to grow by 1.6% in real terms, according to the Statistics and Census Bureau (DSEC).
DSEC also reported that the economic growth rate in the first quarter was revised upward to 9.4% and for the second quarter down to 5.9%, with the 2017 financial year 2017 revised upwards to 9.7%.
In the third quarter of the year, growth in external demand slowed, with services exports increasing by 6.3% year-on-year, notably a rise of 5.8% in gaming exports and 11.4% in exports of other tourist services.
Domestic demand remained fragile, with a sharp contraction of 20.1% in investment in the third quarter, compared to -13.8% in the previous quarter, with a year-on-year increase of 4.1% in private consumption, 5.4% in government final consumption expenditure and 2.9% in imports of goods.
Private sector investment fell by 17.8% year-on-year, with a sharp fall of 20.6% in construction investment, due to a significant reduction in construction of major projects, while investment in equipment decreased slightly by 1.0%.
Public sector investment showed an annual decrease of 32.7%, with a notable decrease of 45.7% in public works, mainly due to the successive completion of major infrastructure projects, however, investment in equipment increased by 53.0%.
In the first three quarters of 2018 Macau’s economy registered year-on-year growth of 5.6% in real terms. (macauhub)