Balance of payments at surplus of USD2.66b in 2020

Macau’s overall balance of payments (BOP) in 2020 preliminarily recorded a surplus of MOP21.3 billion, the SAR’s monetary watchdog has announced.
The Monetary Authority of Macao (AMCM) said in its latest report that the current account surplus amounted to MOP23.7 billion, and financial non-reserve assets showed a net increase of MOP31.9 billion.
The BOP — which is comprised of the current account, the capital account and the financial account — is a statistical statement that summarizes the external transactions of an economy with the rest of the world.
In Macau, exports of goods increased by 129.3% year-on-year, while imports of goods rose marginally by 0.1%. As a result, the merchandise trade deficit narrowed from MOP84.0 billion in 2019 to MOP64.6 billion.
Service exports fell by 75.3%, mainly attributable to falling exports of travel services affected by Covid-19, while service imports also dropped by 36.3%.
Therefore, the services account surplus fell from MOP310.0 billion in 2019 to MOP60.4 billion in 2020.
The primary income account, which reflects cross-border flows of factor income, recorded a net inflow of MOP40.1 billion last year. The secondary income account, which covers current transfers between Macau residents and non-residents, recorded a net outflow of MOP12.2 billion in 2020.
Financial non-reserve assets registered a net outflow of MOP31.9 billion in 2020, representing a decrease of MOP46.9 billion compared to the net outflow in 2019.
Reserve assets in the financial account (after price, exchange rate and other adjustments) rose by MOP21.3 billion compared to an increase of MOP12.1 billion in 2019, reflecting that the overall BOP remained in surplus. MDT