Economy shrinks 20 pct in 2015 amid gaming slump

For the whole year of 2015, Macau’s economy shrank 20.3 per cent year-on-year in real terms, with the city reeling from falling casino revenues and fewer visitors.
In 2015, Gross Domestic Product (GDP) amounted to MOP368.7 billion (US$46.04 billion) while per capita GDP was MOP574,790 (about US$71,984) according to data from the Statistics and Census Service (DSEC) released yesterday.
The implicit deflator of GDP increased 4.4 per cent year-on-year, while economic growth for 2014 was revised downwards to 0.9 per cent.
DSEC says that the economic contraction was mainly due to the continuous decrease in exports of services, down 26.8 per cent year-on-year, with exports of gaming services tumbling 33.4 per cent and exports of other tourism services dropping 11.6 per cent.
The city’s economy shrank 14.4 per cent in the fourth quarter, easing from a fall of 24.2 per cent in the three months through September. There are signs that Macau’s gaming market has reached bottom as a rise in the number of Mainland Chinese tourists during last month’s Lunar New Year holiday helped ease the industry’s 21-month slump. Gross gaming revenue fell 0.1 per cent to MOP19.5 billion in February, the smallest decrease since the downturn began in June 2014.

Slower expansion of domestic demand
Meanwhile, domestic demand expanded at a slower pace, up a modest 1.9 per cent year-on-year, with growth in private consumption expenditure, government final consumption expenditure and gross fixed capital formation easing to 2.4 per cent, 4.2 per cent and 0.9 per cent, respectively.
External demand slackened, as exports and imports of goods rose at a slower rate of 10.2 per cent and 0.1 per cent year-on-year, respectively, whilst the imports of services fell by 3.4 per cent.
GDP structure by major components revealed the relative importance of net exports of goods and services to GDP had dropped significantly to 40.7 per cent in 2015 from 53.4 per cent in 2014 on account of the substantial decline in exports of services.
By contrast, domestic demand increased year-on-year, bringing its relative importance to GDP up to 59.3 per cent in 2015 from 46.6 per cent in 2014, of which the share of private consumption expenditure (25.7 per cent), government final consumption expenditure (9.5 per cent) and investment (24.2 per cent) rose by 5.8, 2.5 and 4.5 percentage points, respectively.

Q4 GDP dipped 14.4 pct
DSEC data also indicates that GDP for the fourth quarter of 2015 contracted by 14.4 per cent year-on-year in real terms, a notable deceleration from the 21.0 per cent decline of the previous quarter.
Total exports of services shrank 19.1 per cent, as a decrease in visitor arrivals and total visitor spending dragged down exports of other tourism services and gaming services by 6.1 per cent and 25.4 per cent, respectively.
Domestic demand weakened, with private consumption expenditure and government final consumption expenditure rising marginally by 1.3 per cent and 1.6 per cent, respectively, with gross fixed capital formation falling 17.4 per cent.
Exports and imports of goods decreased 12.7 per cent and 13.8 per cent, respectively, while imports of services dropped by 7.9 per cent. Economic growth for the first three quarters of 2015 was revised upwards to -21.9 per cent, -23.7 per cent and -21.0 per cent, respectively.
The implicit deflator of GDP that measures changes in prices increased by 3.0 per cent year-on-year in the fourth quarter. For the whole year of 2015, Macau’s economy shrank 20.3 per cent year-on-year in real terms, with the city reeling from falling casino revenues and fewer visitors.
In 2015, Gross Domestic Product (GDP) amounted to MOP368.7 billion (US$46.04 billion) while per capita GDP was MOP574,790 (about US$71,984) according to data from the Statistics and Census Service (DSEC) released yesterday.
The implicit deflator of GDP increased 4.4 per cent year-on-year, while economic growth for 2014 was revised downwards to 0.9 per cent.
DSEC says that the economic contraction was mainly due to the continuous decrease in exports of services, down 26.8 per cent year-on-year, with exports of gaming services tumbling 33.4 per cent and exports of other tourism services dropping 11.6 per cent.
The city’s economy shrank 14.4 per cent in the fourth quarter, easing from a fall of 24.2 per cent in the three months through September. There are signs that Macau’s gaming market has reached bottom as a rise in the number of Mainland Chinese tourists during last month’s Lunar New Year holiday helped ease the industry’s 21-month slump. Gross gaming revenue fell 0.1 per cent to MOP19.5 billion in February, the smallest decrease since the downturn began in June 2014.

Slower expansion of domestic demand
Meanwhile, domestic demand expanded at a slower pace, up a modest 1.9 per cent year-on-year, with growth in private consumption expenditure, government final consumption expenditure and gross fixed capital formation easing to 2.4 per cent, 4.2 per cent and 0.9 per cent, respectively.
External demand slackened, as exports and imports of goods rose at a slower rate of 10.2 per cent and 0.1 per cent year-on-year, respectively, whilst the imports of services fell by 3.4 per cent.
GDP structure by major components revealed the relative importance of net exports of goods and services to GDP had dropped significantly to 40.7 per cent in 2015 from 53.4 per cent in 2014 on account of the substantial decline in exports of services.
By contrast, domestic demand increased year-on-year, bringing its relative importance to GDP up to 59.3 per cent in 2015 from 46.6 per cent in 2014, of which the share of private consumption expenditure (25.7 per cent), government final consumption expenditure (9.5 per cent) and investment (24.2 per cent) rose by 5.8, 2.5 and 4.5 percentage points, respectively.

Q4 GDP dipped 14.4 pct
DSEC data also indicates that GDP for the fourth quarter of 2015 contracted by 14.4 per cent year-on-year in real terms, a notable deceleration from the 21.0 per cent decline of the previous quarter.
Total exports of services shrank 19.1 per cent, as a decrease in visitor arrivals and total visitor spending dragged down exports of other tourism services and gaming services by 6.1 per cent and 25.4 per cent, respectively.
Domestic demand weakened, with private consumption expenditure and government final consumption expenditure rising marginally by 1.3 per cent and 1.6 per cent, respectively, with gross fixed capital formation falling 17.4 per cent.
Exports and imports of goods decreased 12.7 per cent and 13.8 per cent, respectively, while imports of services dropped by 7.9 per cent. Economic growth for the first three quarters of 2015 was revised upwards to -21.9 per cent, -23.7 per cent and -21.0 per cent, respectively.
The implicit deflator of GDP that measures changes in prices increased by 3.0 per cent year-on-year in the fourth quarter.