The local Gross Domestic Product (GDP) has contracted by 56.3 per cent in 2020, showcasing the full extent of the Covid-19 pandemic economic impact.
According to data published by the Statistic and Census Bureau (DSEC), In 2020, GDP amounted to MOP194.4 billion (US$24.3 billion) in 2020 and per-capita GDP reached MOP285,314.
‘The pandemic of novel coronavirus pneumonia had a significant impact on global economic activity in 2020. The economy of Macao, which was mainly driven by exports of services, was inevitably affected, with a substantial drop in total demand,’ the department noted.
The department noted that domestic demand shrank by 10.3 per cent year-on-year as gross fixed capital formation fell by 15.1 per cent resulting from a decline in private construction investment.
‘Private consumption decreased by 16.3 per cent year-on-year as residents went out less and made fewer trips abroad amid the pandemic and economic outlook remained uncertain. In response to the pandemic, the SAR government scaled up the procurement of protective gear and medical supplies, rented hotels to be used as quarantine facilities and introduced economic relief measures’
These measures were said to have driven up government final consumption expenditures by 11.4 per cent.
Local authorities diverted some MOP40 billion from local financial reserves to balance the 2020 expected deficit, as gaming tax revenue dropped considerably as visitor arrivals plunged by 85 per cent year-on-year to 5.8 million.
Exports of services slid by 75 per cent year-on-year, with exports of gaming services and other tourism services falling by 80.4 per cent and 73.4 per cent respectively, but with exports of goods soaring by 129 per cent.
Rating agency Fitch Ratings has predicted that Macau’s economy will rebound by over 60 per cent year-on-year in 2021, while the International Monetary Fund forecasts a more conservative 23.8 per cent growth.