ECONOMY | GDP rebounds 69.5% in Q2

Macau’s gross domestic product (GDP) rebounded by 69.5% year-on-year in real terms in the second quarter of 2021, the special administrative region’s (SAR) statistics department said last week.
The latest report from the Statistics and Census Service (DSEC) showed that Macau’s economy resumed positive growth on account of a relatively low base of comparison in the same quarter of last year when local economic activities were limited due to entry restrictions for visitors amid the COVID-19 pandemic.
The pick-up in external demand in the second quarter with the epidemic under control also contributed to the growth.
The implicit deflator of GDP, which measures the overall changes in prices, dropped by 0.3% in the second quarter, showed the report.
Exports of services ballooned by 555.6%, of which exports of gaming services and other tourism services rocketed by 1,089.7% and 1,328.3% respectively. Exports of goods surged by 606.9%.
Domestic demand maintained growth, rising by 3.7% year on year. Imports of goods swelled by 173.5% while imports of services rose by 54.2%.
Local economic activities of residents have basically recovered, with household final consumption expenditure in the domestic market increasing by 8.8%. Due to the relatively low base of comparison in the same quarter last year, household final consumption expenditure abroad went up by 87.0%. The overall private consumption rose by 11.5%.
As the government allocated expenditure for epidemic prevention and implemented economic assistance measures, government final consumption expenditure grew steadily by 0.4% year-on-year, of which net purchases of goods and services went up by 0.4% and compensation of employees increased by 0.5%.
Gross fixed capital formation declined by 10.1%, of which construction investment decreased by 16.7% whereas equipment investment rose by 25.0%.
The government continued to promote infrastructure projects, with public construction investment and equipment investment expanding by 37.0% and 37.3% respectively.
As to private investment, construction investment dropped by 27.7% owing to smaller investment in large-scale hotel projects compared to the same quarter last year and fewer private residential projects. However, equipment investment increased by 24.2%.
The pick-up in total demand drove up merchandise trade, with imports and exports of goods surging by 173.5% and 606.9% respectively.
The number of visitor arrivals to Macau leapt by 4,302.6% year-on-year and 25.9% quarter-to-quarter in the second quarter of 2021. MDT/AP