Economy grows 6 percent in 2nd quarter

Macau’s gross domestic product (GDP) grew by 6 percent year-on-year in real terms in the second quarter of 2018, according to the latest information from the Statistics and Census Service (DSEC). The government agency attributed this growth to steady growth in the export of services and private consumption.

Nevertheless, economic growth in the second quarter was lower than the 9.2 percent rise in the previous quarter, due to a smaller increase in the export of services and a notable decline in investment.

Meanwhile, the GDP deflator, which measures the overall change in prices, went up by 3.5 percent year-on-year.

According to DSEC, the total exports of services increased by 13 percent year-on-year, on the back of external demand, with exports of gaming services and other tourism services rising by 13.7 percent and 13 percent respectively. Meanwhile, the export of goods went up by 30 percent.

Domestic demand eased slightly, owing to a 11.9 percent decrease in investment; private consumption expenditure and government final consumption expenditure rose by 5.3 percent and 5.1 percent respectively year-on-year, while imports of goods increased by 10 percent.

Private consumption expenditure showed solid growth. Total employment and employment earnings increased amid a satisfactory employment situation, driving private consumption expenditure up by 5.3 percent year-on-year, higher than the 4.8 percent rise in the previous quarter.

Government final consumption expenditure registered growth of 5.1 percent year-on-year, higher than the 2.2 percent growth in the previous quarter, while compensation of employees and net purchases of goods and services went up by 3.3 percent and 8.8 percent respectively.

For the first half of 2018, the economy of Macau grew by 7.6 percent year-on-year in real terms. In terms of the major expenditure components of GDP, private consumption expenditure and government final consumption expenditure rose by 5.1 percent and 3.7 percent year-on-year respectively, whereas investment dropped by 7.1 percent.