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Friday, November 20, 2020, 22:51
Macao GDP drops by 63.8% in Q3 2020
By Xinhua
Friday, November 20, 2020, 22:51 By Xinhua

This Jan 30, 2020, photo shows a general view of Macao city is seen from the observation deck of Macau Town. (PHILIP FONG / AFP)

MACAO - Macao's gross domestic product (GDP) dropped by 63.8 percent year-on-year in real terms in the third quarter of 2020, a smaller decline compared to the previous quarter's 68.0 percent, the special administrative region (SAR)'s statistics department said here on Friday.

Exports of goods surged by 75.4 percent while imports of goods dropped by 12.6 percent in the first three quarters

The latest report from the Statistics and Census Service (DSEC) showed that the implicit deflator of GDP, which measures the overall changes in prices, dropped by 0.6 percent year-on-year in the third quarter.

With a rebound in visitor arrivals following the easing of travel restrictions for mainland residents to visit Macao, exports of services of Macao fell at a slower rate of 87.5 percent in the third quarter, of which exports of gaming services and other tourism services went down by 93.6 percent and 87.9 percent respectively.

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Meanwhile, exports of goods soared by 252.2 percent year-on-year, the DSEC report added.

Domestic demand saw a smaller decrease of 6.1 percent year-on-year, on account of a slower rate of decline in private consumption expenditure. Imports of goods increased by 17.6 percent while imports of services slid by 44.1 percent.

As there were no new confirmed cases of novel coronavirus in Macao in the third quarter, economic activity gradually recovered. Household final consumption expenditure in the domestic market showed a smaller decline of 8.4 percent, underpinned by the consumption subsidy scheme.

Meanwhile, household final consumption expenditure abroad declined by 68.1 percent owing to the ongoing entry restrictions imposed in different places. The overall private consumption decreased by 16.7 percent year-on-year.

As the SAR government maintained its expenditure on pandemic prevention and continued providing economic relief measures, government final consumption expenditure recorded a larger increase of 18.6 percent as against the 16.3 percent growth in the previous quarter.

Net purchases of goods and services from government rose by 33.9 percent while compensation of employees went up by 2.7 percent.

Investment in fixed assets went down by 5.6 percent year-on-year. Construction investment dropped by 10.3 percent while equipment investment increased by 14.5 percent. Public construction investment slid by 18.7 percent year-on-year, and equipment investment fell by 28.2 percent.

As regards private investment, construction investment shrank by 7.2 percent year-on-year owing to reduced investment in residential projects and the corresponding drop in real estate developers' operating margin. On the other hand, equipment investment grew by 22.9 percent.

Merchandise trade showed improvement, with imports and exports of goods rising by 17.6 percent and 252.2 percent year-on-year respectively.

Macao's GDP for the first three quarters of 2020 declined by 59.8 percent year-on-year in real terms.

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In terms of the major expenditure components of GDP, private consumption expenditure decreased by 18.1 percent in the first three quarters, whereas government final consumption expenditure rose by 13.4 percent. Investment slid by 15.5 percent.

Exports of goods surged by 75.4 percent while imports of goods dropped by 12.6 percent in the first three quarters. Exports of services declined by 79.6 percent, with exports of gaming services falling by 83.6 percent.

In addition, imports of services reduced by 41.3 percent in the first three quarters. 

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